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.
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) – 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.”
SYDNEY (Reuters) – The Australian government said on Friday it would meet a week ahead of schedule to decide whether to ease social distancing restrictions, as the numbers of new coronavirus infections dwindle and pressure mounts for business and schools to reopen.
Australia has reported about 6,700 cases of the new coronavirus and 93 deaths, well below the levels reported in the United States and Europe. Growth in new infections has slowed to less 0.5% a day, compared to 25% a month ago.
Prime Minister Scott Morrison said it was imperative to lift social distancing restrictions as early as possible as 1.5 million people were now on unemployment benefits and the government forecast the unemployment rate to top 10% within months.
“We need to restart our economy, we need to restart our society. We can’t keep Australia under the doona,” Morrison said, using an Australian word for quilt.
Morrison’s government has pledged spending of more than 10% of GDP to boost the economy but the central bank still warns the country is heading for its worst contraction since the 1930s.
With less than 20 new coronavirus cases discovered each day, Morrison said state and territory lawmakers would meet on May 8 – a week earlier than expected – to determine whether to lift restrictions.
“Australians deserve an early mark for the work that they have done,” Morrison told reporters in Canberra.
Australia attributes its success in slowing the spread of COVID-19 to social distancing restrictions imposed in April, including the forced closures of pubs, restaurants and limiting the size of indoor and outdoor gatherings.
Morrison said 3.5 million people had downloaded an app on their smartphones designed to help medics trace people potentially exposed to the virus, though the government is hoping for about 40% of the country’s 25.7 million population to sign up to ensure it is effective.
Cabinet will also decide next week how to restart sport across the country, the prime minister said.
The government says any resumption of sport should not compromise the public health, and recommends a staggered start beginning with small groups that play non-contact contact sport outdoors.
The recommendations suggests Australia’s National Rugby League (NRL) competition may not get permission to restart its competition as soon as many in the sports-mad country would like.
Image copyright GETTY IMAGESImage caption An empty stretch of the road and Delhi Police barricades to screen commuters during lockdown, at Delhi Gate on April 16, 2020 in New Delhi, India.
India has eased some restrictions imposed as part of a nationwide lockdown to curb the spread of the coronavirus.
Most of the new measures are targeted at easing pressure on farming, which employs more than half the nation’s workforce.
Allowing farms to operate again has been seen as essential to avoid food shortages.
But some other measures announced last week, will not be implemented.
This includes the delivery of non-essential items such as mobile phones, computers, and refrigerators by e-commerce firms – the government reversed its decision on that on Sunday.
And none of the restrictions will be lifted in areas that are still considered “hotspots” for the virus – this includes all major Indian cities.
Domestic and international flights and inter-state travel will also remain suspended.
So what restrictions are being eased?
Most of the new measures target agricultural businesses – farming, fisheries and plantations. This will allow crops to be harvested and daily-wagers and others working in these sectors to continue earning.
To restore the supply chain in these industries, cargo trucks will also be allowed to operate across state borders to transport produce from villages to the cities.
Essential public works programmes – such as building roads and water lines in rural areas – will also reopen, but under strict instructions to follow social distancing norms. These are a huge source of employment for hundreds of thousands of daily-wage earners, and farmers looking to supplement their income.
Banks, ATMs, hospitals, clinics, pharmacies and government offices will remain open. And the self-employed – such as plumbers, electricians and carpenters – will also be allowed to work.
Some public and even private workplaces have been permitted to open in areas that are not considered hotspots.
But all businesses and services that reopen are expected to follow social distancing norms.
Who decides what to reopen?
State governments will decide where restrictions can be eased. And several state chief ministers, including Delhi’s Arvind Kejriwal, have said that none of the restrictions will be lifted in their regions.
Mr Kejriwal said the situation in the national capital was still serious and the decision would be reviewed after one week.
India’s most populous state, Uttar Pradesh, will also see all restrictions in place, as will the southern states of Andhra Pradesh, Telangana and Karnataka.
The southern state of Kerala, which has been widely acknowledged for its success in dealing with the virus, has announced a significant easing of the lockdown in areas that it has demarcated as “green” zones.
This includes allowing private vehicular movement and dine-in services at restaurants, with social distancing norms in place. However, it’s implementing what is known as an “odd-even” scheme – private cars with even and odd number plates will be allowed only on alternate days, to limit the number of people on the road.
BEIJING (Reuters) – For Zhang Yu, who runs a cafe in one of Beijing’s top tourist spots, business has never been so bad.
To contain the spread of the coronavirus, bars and cafes in the Wudaoying hutong – a top Lonely Planet destination built around a narrow lane – are permitted to provide take-away services only. Non-residents must show proof they have an appointment to enter the area.
Added to which, tourism has plummeted.
“Don’t mention it! This is supposed to be the peak season,” said Zhang, who has run her cafe for five years. “But there are almost no customers as they (authorities) don’t want to have people hanging around here.”
While China’s manufacturing and retail sectors are starting to get back to work as the pace of new infections slows sharply, tourism sites in Beijing remain a shadow of their former and bustling self.
China’s capital city has maintained the highest level of emergency response to the outbreak, so tourist attractions like the Forbidden City remain closed. A 14-day quarantine for new arrivals has stifled travel.
As a result, small business owners running restaurants, souvenir shops and tourism agencies are struggling.
Only a little over 20% of tourism-related businesses in Beijing had resumed operation as of the three-day Qingming national holiday in early April, a survey by on-demand delivery service giant Meituan Dianping showed.
HANGING ON
The only people present in Wudaoying on a recent afternoon were a few elderly residents sitting outside to enjoy the spring sunshine. A cat made its way lazily through empty rooftop bars.
“We used to see more customers in one hour in pre-virus days than we see in a whole day right now,” said a worker at a sandwich restaurant in Wudaoying.
In another popular area, Khazzy, a 32-year-old doctoral student who opened a restaurant last October, has had only four customers all day.
“There are almost no tourists coming to Beijing and the remaining locals have concerns about eating out,” Khazzy said as sunset approached.
Khazzy said he has let five of his 13 staff go and has no idea how long he can stay afloat financially even though his landlord has agreed to waive one month’s rent on the property in Qianmen, near Beijing’s Tiananmen Square.
More than half of the shops in Qianmen remain closed. The manager of a state-backed noodle restaurant said most of the closed stores are privately owned small businesses that can’t secure enough business to support their daily operations.
She said revenues at the noodle restaurant have plunged more than 80%, but staff salaries have not been cut.
Zhang, the cafe owner in Wudaoying, reckoned small businesses could hold on for the next three months.
“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.”
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.”
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.”
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.
BEIJING (Reuters) – China reported on Saturday a rise in new coronavirus cases, as authorities try to head off a second wave of infections, particularly from imported and asymptomatic cases, as curbs on cities and travel are lifted.
The National Health Commission said 46 new cases were reported on Friday, including 42 involving travellers from abroad, up from 42 cases a day earlier.
In its statement the commission added that 34 new asymptomatic cases were reported, down from 47 the previous day.
Mainland China’s tally of infections now stands at 81,953. The death toll rose by three to 3,339.
Tough curbs imposed since January helped rein in infections sharply from the height of the pandemic in February. But policymakers fear a second wave triggered by arrivals from overseas or asymptomatic patients.
Northeastern Heilongjiang recently reported a spike in new cases because of Chinese nationals entering the province from Russia, which has seen a surge of cases.
Provincial health officials said it had 22 new imported cases on Friday, all Chinese nationals coming from Russia, and one new local case, in its capital of Harbin.
Inner Mongolia had a daily tally of 27 new imported cases by Saturday morning, all from Russia, the region’s health authority said.
The central province of Hubei, where the virus emerged late last year, reported no new cases for a seventh successive day.
A rise in virus infections has prompted authorities in Guangzhou to step up scrutiny of foreigners, ordering bars and restaurants not to serve clients who appear to be of African origin, the U.S. consulate in the southern city said.
Anyone with “African contacts” faces mandatory virus tests followed by quarantine, regardless of recent travel history or previous isolation, it said in a statement.
It advised African-Americans or those who feel they might be suspected of contact with nationals of African origin to avoid the city.
Since the epidemic broke out in the provincial capital of Wuhan, it has spread around the world, infecting 1.6 million people and killing more than 100,000.
MUNICH (Reuters) – One January lunchtime in a car parts company, a worker turned to a colleague and asked to borrow the salt.
As well as the saltshaker, in that instant, they shared the new coronavirus, scientists have since concluded.
That their exchange was documented at all is the result of intense scrutiny, part of a rare success story in the global fight against the virus.
The co-workers were early links in what was to be the first documented chain of multiple human-to-human transmissions outside Asia of COVID-19, the disease caused by the coronavirus.
They are based in Stockdorf, a German town of 4,000 near Munich in Bavaria, and they work at car parts supplier Webasto Group. The company was thrust under a global microscope after it disclosed that one of its employees, a Chinese woman, caught the virus and brought it to Webasto headquarters. There, it was passed to colleagues – including, scientists would learn, a person lunching in the canteen with whom the Chinese patient had no contact.
The Jan. 22 canteen scene was one of dozens of mundane incidents that scientists have logged in a medical manhunt to trace, test and isolate infected workers so that the regional government of Bavaria could stop the virus from spreading.
That hunt has helped Germany win crucial time to build its COVID-19 defences.
The time Germany bought may have saved lives, scientists say. Its first outbreak of locally transmitted COVID-19 began earlier than Italy’s, but Germany has had many fewer deaths. Italy’s first detected local transmission was on Feb. 21. By then Germany had kicked off a health ministry information campaign and a government strategy to tackle the virus which would hinge on widespread testing. In Germany so far, more than 2,100 people have died of COVID-19. In Italy, with a smaller population, the total exceeds 17,600.
“We learned that we must meticulously trace chains of infection in order to interrupt them,” Clemens Wendtner, the doctor who treated the Munich patients, told Reuters.
Wendtner teamed up with some of Germany’s top scientists to tackle what became known as the ‘Munich cluster,’ and they advised the Bavarian government on how to respond. Bavaria led the way with the lockdowns, which went nationwide on March 22.
Scientists including England’s Chief Medical Officer Chris Whitty have credited Germany’s early, widespread testing with slowing the spread of the virus. “‘We all know Germany got ahead in terms of its ability to do testing for the virus and there’s a lot to learn from that,’” he said on TV earlier this week.
Christian Drosten, the top virologist at Berlin’s Charite hospital, said Germany was helped by having a clear early cluster. “Because we had this Munich cohort right at the start … it became clear that with a big push we could inhibit this spreading further,” he said in a daily podcast for NDR radio on the coronavirus.
Drosten, who declined to be interviewed for this story, was one of more than 40 scientists involved in scrutiny of the cluster. Their work was documented in preliminary form in a working paper at the end of last month, intended for The Lancet. The paper, not yet peer-reviewed, was shared on the NDR site.
ELECTRONIC DIARIES
It was on Monday, Jan. 27, that Holger Engelmann, Webasto’s CEO, told the authorities that one of his employees had tested positive for the new coronavirus. The woman, who was based in Shanghai, had facilitated several days of workshops and attended meetings at Webasto’s HQ.
The woman’s parents, from Wuhan, had visited her before she travelled on Jan. 19 to Stockdorf, the paper said. While in Germany, she felt unusual chest and back aches and was tired for her whole stay. But she put the symptoms down to jet lag.
She became feverish on the return flight to China, tested positive after landing and was hospitalised. Her parents also later tested positive. She told her managers of the result and they emailed the CEO.
In Germany, Engelmann said he immediately set up a crisis team that alerted the medical authorities and started trying to trace staff members who had been in contact with their Chinese colleague.
The CEO himself was among them. “Just four or five days before I received the news, I had shaken hands with her,” he said.
Now known as Germany’s “Case #0,” the Shanghai patient is a “long-standing, proven employee from project management” who Engelmann knows personally, he told Reuters. The company has not revealed her identity or that of others involved, saying anonymity has encouraged staff to co-operate in Germany’s effort to contain the virus.
The task of finding who had contact with her was made easier by Webasto workers’ electronic calendars – for the most part, all the doctors needed was to look at staff appointments.
“It was a stroke of luck,” said Wendtner, the doctor who treated the Munich patients. “We got all the information we needed from the staff to reconstruct the chains of infection.”
For example, case #1 – the first person in Germany to be infected by the Chinese woman – sat next to her in a meeting in a small room on Jan. 20, the scientists wrote.
Where calendar data was incomplete, the scientists said, they were often able to use whole genome sequencing, which analyses differences in the genetic code of the virus from different patients, to map its spread.
By following all these links, they discovered that case #4 had been in contact several times with the Shanghai patient. Then case #4 sat back-to-back with a colleague in the canteen.
When that colleague turned to borrow the salt, the scientists deduced, the virus passed between them. The colleague became case #5.
Webasto said on Jan. 28 it was temporarily closing its Stockdorf site. Between Jan. 27 and Feb. 11, a total of 16 COVID-19 cases were identified in the Munich cluster. All but one were to develop symptoms.
All those who tested positive were sent to hospital so they could be observed and doctors could learn from the disease.
Bavaria closed down public life in mid-March. Germany has since closed schools, shops, restaurants, playgrounds and sports facilities, and many companies have shut to aid the cause.
HAMMER AND DANCE
This is not to say Germany has defeated COVID-19.
Its coronavirus death rate of 1.9%, based on data collated by Reuters, is the lowest among the countries most affected and compares with 12.6% in Italy. But experts say more deaths in Germany are inevitable.
“The death rate will rise,” said Lothar Wieler, president of Germany’s Robert Koch Institute for infectious diseases.
The difference between Germany and Italy is partly statistical: Germany’s rate seems so much lower because it has tested widely. Germany has carried out more than 1.3 million tests, according to the Robert Koch Institute. It is now carrying out up to 500,000 tests a week, Drosten said. Italy has conducted more than 807,000 tests since Feb. 21, according to its Civil Protection Agency. With a few local exceptions, Italy only tests people taken to hospital with clear and severe symptoms.
Germany’s government is using the weeks gained by the Munich experience to double the number of intensive care beds from about 28,000. The country already has Europe’s highest number of critical care beds per head of the population, according to a 2012 study.
Even that may not be enough, however. An Interior Ministry paper sent to other government departments on March 22 included a worst-case scenario with more than 1 million deaths.
Another scenario saw 12,000 deaths – with more testing after partial relaxation of restrictions. That scenario was dubbed “hammer and dance,” a term coined by blogger Tomas Pueyo. It refers to the ‘hammer’ of quick aggressive measures for some weeks, including heavy social distancing, followed by the ‘dance’ of calibrating such measures depending on the transmission rate.
The German government paper argued that in the ‘hammer and dance’ scenario, the use of big data and location tracking is inevitable. Such monitoring is already proving controversial in Germany, where memories of the East German Stasi secret police and its informants are still fresh in the minds of many.
A subsequent draft action plan compiled by the government proposes the rapid tracing of infection chains, mandatory mask-wearing in public and limits on gatherings to help enable a phased return to normal life after Germany’s lockdown. The government is backing the development of a smartphone app to help trace infections.
Germany has said it will re-evaluate the lockdown after the Easter holiday; for the car parts maker at the heart of its first outbreak, the immediate crisis is over. Webasto’s office has reopened.
All 16 people who caught COVID-19 there have recovered.
TOKYO (Reuters) – Uncertainty over Japan’s economic outlook is “extremely high” as the coronavirus pandemic hits output and consumption, central bank Governor Haruhiko Kuroda said, stressing his readiness to take additional monetary steps to prevent a deep recession.
While aggressive central bank actions across the globe have eased financial market tensions somewhat, corporate funding strains were worsening, Kuroda told a quarterly meeting of the Bank of Japan’s regional branch managers on Thursday.
“The spread of the coronavirus is having a severe impact on Japan’s economy through declines in exports, output, demand from overseas tourists and private consumption,” he said.
Japan recorded 503 new coronavirus infections on Wednesday – its biggest daily increase since the start of the pandemic – as a state of emergency took effect giving governors stronger legal authority to urge people to stay home and businesses to close.
In contrast to stringent lockdowns in some countries, mandating fines and arrests for non-compliance, enforcement will rely more on peer pressure and a deep-rooted Japanese tradition of respect for authority.
RELATED COVERAGE
Head of Japan junior coalition partner wants to consider more economic steps
Some firms in central Japan cutting back on capex: BOJ official
The balancing act underscores the difficulty authorities have in trying to contain the outbreak without imposing a mandatory lockdown that could deal a major blow to an economy already struggling to cope with the virus outbreak.
Hideaki Omura, the governor of the central Japan prefecture of Aichi, said he would declare a state of emergency for his prefecture on Friday.
Omura said Aichi, which includes the city of Nagoya and hosts Toyota Motor Corp, was talking with the central government about being included in the national state of emergency as well, but felt he could not wait any longer to restrict movement.
“Looking at things the past week and watching the situation – the rise in patients, the number without any traceable cause – we judged that it was a very dangerous situation and wanted to make preparations,” he told a news conference.
Even with less stringent restrictions compared with other countries, analysts polled by Reuters expect Japan to slip into a deep recession this year as the virus outbreak wreaks havoc on business and daily life.
Shares of Oriental Land Co (4661.T) fell on Thursday after the operator of Tokyo Disneyland said it would keep the amusement park shut until mid-May.
Entertainment facility operator Uchiyama Holdings (6059.T) said it was closing 43 karaoke shops and 11 restaurants until May 6.
“For the time being, we won’t hesitate to take additional monetary easing steps if needed, with a close eye on developments regarding the coronavirus outbreak,” Kuroda said.
Kuroda’s remarks highlight the strong concern policymakers have over the outlook for Japan’s economy and how companies continue to struggle to generate cash, despite government and central bank promises to flood the economy with funds.
At its policy meeting later this month, the BOJ is likely to make a rare projection that the world’s third-largest economy will shrink this year, sources have told Reuters.
The BOJ eased monetary policy in March by pledging to boost purchases of assets ranging from government bonds, commercial paper, corporate bonds and trust funds investing in stocks.
The government also rolled out a nearly $1 trillion stimulus package to soften the economic blow.
BEIJING (Reuters) – As the world grapples with the escalating coronavirus pandemic, China reopened the city of Wuhan on Wednesday, allowing its 11 million residents to leave for the first time in over two months, a milestone in its effort to combat the outbreak.
But while the operation to contain Wuhan’s coronavirus outbreak has been hailed as a success by China and many international health experts, it didn’t come easy.
Using virus , official reports and over a dozen interviews with officials, residents and scientists in Wuhan, Reuters has compiled a comprehensive account of how the military-style quarantine of the city unfolded.
SCIENTIST TOUR
Wuhan health authorities reported the first case of what turned out to be the new coronavirus in December, and the first known death linked to the virus in early January.
City officials insisted the situation was under control for the first two weeks of January, downplaying the possibility of human-to-human transmission as they focused on a seafood and wildlife market where the outbreak was believed to have started.
But troubling signs were emerging.
Hospital respiratory wards began reaching capacity by around Jan 12, and some people were being turned away, a half dozen Wuhan residents told Reuters.
But at least up to Jan. 16, Wuhan’s government said that no new cases of the disease had occurred for about two weeks, and the city continued as normal. Diners packed restaurants, shoppers flocked to commercial districts, and travellers headed to train stations and airports for their Lunar New Year holidays.
Minimal measures were put in place to take the temperatures of residents in public places, or encourage them to wear protective masks, residents said.
“We ordinary people did not know that we needed to take protective measures,” said Wang Wenjun, whose uncle died of the coronavirus on Jan 31.
But that changed after Jan 18, when a team of scientists sent by the central government in Beijing arrived in Wuhan.
Leading the group was 83-year-old Zhong Nanshan, an epidemiologist credited with raising the alarm in China about the spread of another coronavirus, SARS, in 2003. Over two days, the team investigated the source and scale of Wuhan’s outbreak, inspecting the seafood and wildlife market and other sites.
As the scientists toured Wuhan, their mood darkened as the scale of the crisis became clear, said a source familiar with the trip.
A day before the scientists arrived, four new cases were confirmed in Wuhan, none of which had apparent links to the market.
That cast doubt over local authorities’ previous assertions that there was no substantial evidence of human-to-human transmission, which would have required them to impose drastic containment measures on the city.
The scientists’ visit was the third by an expert group since the end of December as suspicion in Beijing grew that the virus was transmissible and local officials had concealed the challenges they faced containing the disease, according to an academic on the Jan 18 trip and a scientist who visited on Jan 2. Another trip took place on Jan 8.
During the Jan 18 visit, the team made several discoveries that had been previously undisclosed to the public by local officials.
Over a dozen healthcare workers had been infected, efforts to track close contacts with other confirmed cases had dwindled, and hospitals had not conducted a single test before Jan. 16, Zhong and other experts on the team announced a few days after their trip to Wuhan.
On Jan 19, the group of about a half dozen scientists returned to Beijing, where they reported their findings to the National Health Commission, which formulates China’s health policy.
The experts recommended that Wuhan be put under quarantine and that hospital capacity be rapidly expanded, according to two sources who were briefed on the discussions. Zhong himself had suggested the lockdown measures, they said. Zhong and the commission did not respond to requests for comment.
One of the sources said the proposal was initially rejected by Wuhan government officials because they feared the economic impact, but they were overruled by the central authorities.
On the evening of Jan 20, the central government set up a taskforce in Wuhan to spearhead the fight against the epidemic.
The lockdown of Wuhan had been put in motion.
Ye Qing, deputy chief of the statistics bureau in Hubei province, where Wuhan is located, said it was only when Zhong announced his findings that he began to realize the seriousness of this epidemic.
Wuhan officials, he said, reacted far too late. “If the government had sent out a notice, if they had asked everyone to wear masks, to do temperature checks, maybe a lot fewer people would have died.”
He added: “It’s a painful lesson with blood and tears.”
Later tracing of virus patients showed that people confirmed to have the virus travelled from Wuhan to at least 25 provinces, municipalities and administrative regions across China before the lockdown plan went into action.
The Wuhan government and the National Health Commission in Beijing did not respond to requests for comment.
LOCKDOWN
The ripple effects of events in Beijing were soon felt in Wuhan.
On Jan 22, senior officials in Wuhan received a written government notice telling them not to leave the city, or report their whereabouts if they had, according to two local government sources.
The directive offered no further details, but at about 8 p.m. that night, some officials received notice by telephone that the city would be shut off the next morning, the sources said.
The lockdown was publicly announced at 2 a.m., sending thousands of Wuhan residents scrambling to find a way out.
But access into and out of the city was quickly closed off, with public transportation shut down and the use of private cars banned. Residents were soon after restricted to their homes.
Having seized control of the crisis, Beijing also removed a number of key officials from Wuhan and Hubei province.
Wuhan’s mayor, Zhou Xianwang, who kept his job, made a frank admission in an interview with state media a few days later that party-reporting mechanisms had stifled early action.
“Information should have been released more quickly,” he said. The process had been slowed by officials in Wuhan being “obliged to seek permission” before fully disclosing information to the public, he said.
‘NEW NORMAL’
Almost two months after the lockdown was imposed, China has started allowing residents to leave the city, as well as permitting domestic flights and inter-city trains. Wuhan has reported just one new case in the past week, and around 93% of all cases have recovered, according to official data.
As other countries consider Wuhan-style quarantines, those numbers have come under increased scrutiny, however. U.S. President Donald Trump said last week that China’s numbers were “on the light side,” drawing the ire of Beijing.
China has also only just begun reporting data on asymptomatic cases – those in which carriers can transmit the disease without feeling symptoms – in the past week. That followed a public backlash on social media in China that the key numbers had been omitted from the official tally, raising concerns that such cases could lead to a second wave of infections.
Xue Lan, a professor at Tsinghua University who is a member of a government coronavirus task force, said precautions put in place for the lockdown – like social distancing – would likely become a part of life in the future in China.
“From now on our social lives will enter a new normal,” Xue said.