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.
Pou Chen makes footwear for the likes of Nike and Adidas, but says it has suffered from a lack of orders as global value chains strain under the impact from the virus
Chinese workers moved to Vietnam to help set-up new factories as the company expand its production, but have now become expendable
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We believe we contributed greatly to the firm’s relocation process, copying the production line management experience and successful model of China’s factories to Vietnamese factories,” said Dave Zhang, who started working for Pou Chen in Vietnam in 2003.
“Now, when the factories over there have matured, and there is a higher automation level in production, our value has faded in the management’s eyes and we got laid off, in the name of the automation level.”
Rush hour chaos returns to Vietnam’s streets as coronavirus lockdown lifted
The group claims the firm began to fire Chinese employees several years ago, with the total number dropping from over 1,000 at its peak to around 400 last year.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
In a further statement to the South China Morning Post, Pou Chen stood by the move as the coronavirus pandemic had reduced demand for footwear products and so required an “adjustment of manpower.”
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Last month, the company was also mulling pay cuts and furloughs that would affect 3,000 employees in Taiwan and officials based in its overseas factories, according to the Taipei Times.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
“I worked at the Dongguan branch of Pou Chen for 11 years from 1995.” Zeng added “In the 1990s and early 2000s, the company expanded rapidly in Dongguan with a growing number of large orders, and every worker had to work hard around the clock. I remember I earned 300 yuan (US$42) a month in 1995, and my monthly salary rose to 1,000 yuan (US$141) in 1998.”
Zeng’s salary eventually rose to over 3,000 yuan in 2005 as China’s economy boomed, leading Pou Chen to seek alternative production sites in Vietnam and Indonesia where labour and land were even cheaper. However, in the early 2000s, the new locations lacked skilled shoe manufacturing workers like Zeng.
“The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world and the offer of US$700 per month was not bad.” Zeng said.
“We actively cooperated with their plans. Over the past decade, we have been away from our families and hometowns, and followed the company’s strategy to work hard in Vietnam.
With no deaths and cases limited to the hundreds, Vietnam’s Covid-19 response appears to be working
“In 2005, the company sent me to its newly-built factory in Vietnam. This year was my 14th year in Dong Nai in Vietnam. I have witnessed the company’s production capacity in Vietnam become larger and larger. When I arrived, there were only a few production lines, and now there are at least dozens of them, employing more than 10,000 workers in each factory.”
According to a report in the Taipei Times on April 14, citing both Reuters and Bloomberg, Pou Chen was ordered to temporarily shut down one of its units in Vietnam over coronavirus concerns, according to Vietnamese state media.
The company was forced to suspend production for two days after failing to meet local rules on social distancing, Tuoi Tre newspaper reported.
“We Chinese employees actually were pathfinders for the company’s relocation from China to Vietnam,” said Zhang, who was in charge of a 1,700-worker factory producing 1.7 million shoe soles per month.
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
“We were sent to resolve any ‘bottlenecks’ in the production lines that were slowing down the rest of the plant, because during the launch of every new production line, Vietnamese workers would strike and get into disputes. As far as I know, there were over a thousand Chinese employees managing various aspects of the production lines in the company’s Vietnamese factories.
“In fact, what our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult. That is to teach Vietnamese workers our experience of working on a production line, improve the productivity of the Vietnamese workers, and help the factories become localised.”
Overall, Pou Chen says it produces more than 300 million pairs of shoes per year, accounting for around 20 per cent of the combined wholesale value of the global branded athletic and casual footwear market.
“Because of cultural shock and great pressure to expedite orders, Vietnamese workers were not used to the management style of Taiwan factories,” Zhang added.
“Many of our Chinese employees were beaten by Vietnamese workers [due to cultural differences about work]. During anti-China protests in Vietnam, we were still under great pressure to keep the local production lines operating.”
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.
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.
‘I felt excited and proud of myself,’ says restaurant owner and former volunteer ambulance driver Xiang Yafei
‘I didn’t feel afraid at all. In my mind, it’s already a successful vaccine,’ he says
Wuhan restaurant owner Xiang Yafei says he wasn’t afraid to be a coronavirus vaccine guinea pig. Photo: Handout
With more than 1.5 million confirmed cases around the world and over 88,000 deaths, the race to develop a vaccine for the coronavirus is hotting up.
According to the World Health Organisation, about 35 companies and academic institutions are currently working on candidate products. Among the front-runners are China’s CanSino Biologics and Moderna Therapeutics in the United States, both of which have begun phase one clinical trials.
In China, those tests, which started on March 19, involve 108 volunteers from Wuhan, the city in which the virus that causes Covid-19 was first detected.
Among them is 30-year-old restaurant owner Xiang Yafei, who spoke to the South China Morning Post about his experiences so far.
Why did you apply to be a vaccine trial volunteer?
I had been doing various voluntary jobs since the end of January when Wuhan was put under lockdown. In the middle of March, one of my friends who knew about the vaccine study asked if I would be interested in joining.
At first I was afraid because there was uncertainty [about the vaccine]. I asked around and some of my friends said there was some risk to being a candidate as I’d be injected with some kinds of virus, but I felt better after I did some research about it online.
Before joining the clinical trials, Xiang worked as a volunteer ambulance driver. Photo: Handout
Also, because the vaccine was developed by the Academy of Military Medical Sciences [a research unit of the People’s Liberation Army] and CanSino, I thought its safety should be guaranteed, as I have confidence in the PLA because several of my relatives are former soldiers. So I agreed to join the trial but didn’t tell my parents because I didn’t want to worry them.
I went to the research team’s office on March 16 and filed my application – that was before they officially announced they were recruiting volunteers on the internet. While I was at the office, I was lucky to meet Major General Chen Wei, the team leader, who explained about the development of the vaccine and assured me that it wouldn’t damage my body. That boosted my confidence.
China ‘leads world in coronavirus research’, followed by US
8 Apr 2020
When did you receive your injection and how did you feel at that time?
I was given mine on the morning of March 19 and immediately put into quarantine for 14 days at a PLA facility. My number in the volunteer group is 006, meaning I was the sixth person to get the vaccine. Before the injection, I underwent a strict physical check-up. I later learned that more than 5,200 people had applied to be volunteers.
Receiving the vaccine was no different to any other injection I’d had before in my life. I didn’t feel any pain and it only lasted about 10 seconds.
But in my heart, I felt excited and proud of myself. I understand that the vaccine will be an important part in battling this coronavirus and testing it is part of the preparations before it can be put on the market.
Xiang (right) said team leader Chen Wei (left) told him about the development of the vaccine and assured him he would come to no harm. Photo: Handout
As volunteers, our job is to work together with the scientists. After all, academician Chen [the major general is also a member of the Chinese Academy of Engineering] and six members of her team have also been injected with the vaccine, and she was the first person to receive it.
They didn’t show any bad symptoms, so at that moment, I didn’t feel afraid at all. In my mind, it’s already a successful vaccine.
And how has your health been since receiving the vaccine?
I had a fever, 37.6 degrees, for the first two days. It was like catching a normal cold, with symptoms of fatigue and drowsiness. But from the third day, my condition improved and I was basically in good health.
The 108 volunteers are divided into three streams, with each receiving either a low, medium or high dose of the drug. I was in the low group so only got one dose. Volunteers in the medium group also got one and the high group were given two shots. As far as I know, everyone was fine after receiving their injections.
When will your trial result be available?
After my quarantine period ended on April 2, I was given a CAT scan and the researchers took a sample of my blood for testing. They said it would be two weeks before they could tell if there were coronavirus antibodies in my bloodstream.
I am not sure if they will tell me the result, but over the next five months I have to do four more blood tests to see if I have antibodies and how long they might remain in my blood.
What did you do to keep yourself entertained during the quarantine period?
It was just rest for me. Before then I’d been a volunteer ambulance driver in Wuhan, working every day taking coronavirus patients to hospital. I’d been really busy for more than a month, so the 14-day quarantine period gave me a chance to relax and catch up on some sleep.
I really enjoyed my time there thanks to the meals I was given, which were nutritious and varied.
The volunteers had to stay in their rooms and we were not allowed to visit each other. We were also told to check our temperature every day and to report any symptoms. I read books and exercised in my room. Some of the volunteers practised calligraphy, some played football with their toilet paper rolls, some jogged, some composed songs, and some made videos about their life in quarantine and uploaded the clips to social media. We did everything just in our own rooms.
Chinese firm CanSino Biologics is one of the front-runners in the race to develop a vaccine for the coronavirus. Photo: Handout
So what was it like working as an ambulance driver?
It was a race against time trying to get people to hospital as quickly as I could. But I felt a real sense of purpose.
At first, I didn’t want to do such work. I was scared because all the patients had been confirmed or were suspected of being infected, and they were contagious.
I was told that no one wanted to be an ambulance driver, but I had a licence to drive a minivan so I decided to do it. I think we young people should make a contribution to society, especially during this difficult time and in our home city and home province, so I applied.
Also, [each day at work] I took a gourd with me. It is called hulu in Mandarin and has auspicious implications in Chinese, as hu sounds similar to fu, which means good luck.
How was your restaurant business affected by the epidemic?
I lost about half a million yuan (US$70,000) because of it. I decided to shut my restaurant down on January 21, two days before the official lockdown, because there had been rumours it was coming and I wanted my workers to be able to leave Wuhan and return to their hometowns.
Right now I’m making preparations to reopen my restaurant, which means a lot of cleaning and disinfecting, and thinking about serving all my customers again.
So how did you feel when the lockdown was lifted on Wednesday?
The situation in Wuhan is getting better. We are proud of what we did for this city. We hope the coronavirus cases can drop to zero soon and our lives can get back to normal.
MUNICH (Reuters) – Germany’s president took an indirect swipe at U.S. President Donald Trump on Friday in accusing Washington, China and Russia of stoking global mistrust and insecurity with a “great powers” competition” that could threaten a new nuclear arms race.
In opening remarks at the annual Munich Security Conference, German President Frank-Walter Steinmeier deplored the three big powers’ approach to global affairs and, without naming Trump, took issue with his vow to “make America great again”.
“‘Great again’ – even at the expense of neighbours and partners,” quipped Steinmeier, a former Social Democrat foreign minister whose comments on foreign policy carry authority.
As foreign minister in 2014, he was central to the so-called “Munich consensus” when German leaders said Berlin was ready to assume more responsibility in global affairs. Steinmeier pressed that point again on Friday, but not before bemoaning the foreign policy approaches of Russia, China and the United States.
“Russia…has made military force and the violent shifting of borders on the European continent the means of politics once again,” he said in the text of a speech for delivery at the opening of the conference.
“China…accepts international law only selectively where it does not run counter to its own interests,” Steinmeier said.
“And our closest ally, the United States of America, under the present administration itself, rejects the idea of an international community.”
The upshot is “more mistrust, more armament, less security…all the way to a new nuclear arms race,” he said.
In response, he said, Germany should raise defence spending to contribute more to European security and to maintain its alliance with the United States, recognising that U.S. interests were gravitating away from Europe toward Asia.
He also called for a European policy towards Russia “that is not limited to condemning statements and sanctions alone”.
Europe, he added, “must find its own balance with China between intensifying competition between systems and the need for cooperation.”
CHINDIA ALERT: You'll be living in their world, very soon 
Coronavirus: Chinese workers in Vietnam cry foul after being fired by Taiwanese firm making shoes for Nike, Adidas
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
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