Archive for ‘Reuters’

25/03/2020

Spain’s coronavirus death toll overtakes China’s

MADRID (Reuters) – Spain’s coronavirus death toll jumped by 738 overnight to exceed that of China, where the disease originated, as the country struggled to cope with an accelerating health crisis and another senior government minister was diagnosed with the virus.

With 3,434 fatalities, Spain now has the second highest number of deaths globally after Italy’s 6,820. Nursing homes across the country have been overwhelmed by cases and a skating rink in Madrid has been turned into a makeshift morgue.

Police stood guard on Wednesday outside the rink, normally a popular venue for children’s birthday parties, as hearses arrived at the building.

The government said Deputy Prime Minister Carmen Calvo had tested positive for coronavirus – the third cabinet member to be infected – but was doing well.

Broad avenues in Madrid and Barcelona were virtually deserted, as were towns and villages across Spain, while fire engines and tractors sprayed disinfectant to clean streets.

Authorities began to carry out mass testing for public workers in a requisitioned fairground in Madrid, one of the worst-hit regions.

Spanish medical staff, who themselves account for thousands of infected cases, have taken out lawsuits against the government, complaining of the lack of basic protective equipment like masks, scrubs and gloves.

The Spanish army has asked NATO for ventilators, protective gear and testing kits, Armed Forces Chief Miguel Villarroya said on Wednesday.

The government had ordered 432 million euros ($467 million) worth of masks, gloves, testing kits and ventilators to be delivered over the next eight weeks, with the first large batch expected this week, Health Minister Salvador Illa said.

In an example of how companies are changing assembly lines to produce medical products, a shoe factory in northern Spain has switched to making simple protective masks – first for its own personnel and then for distribution.

“Now we are working hard to … make something a little more sophisticated for it to reach medical use,” Basilio Garcia, chief executive of the Callaghan shoe factory, told Reuters.

Spain is on Day 11 of a 15-day nationwide lockdown which is likely to be extended to 30 days. Schools, bars, restaurants and most shops are shuttered. Social gatherings are banned. People are confined to their homes.

“We have achieved a near total reduction in social contact,” health emergency chief Fernando Simon told a news conference, adding that Spain was nearing the peak of the epidemic.

The number of coronavirus cases increased by a fifth overnight to 47,610 on Wednesday. The total number could be much higher as the government reported 130,000 sick leaves associated with the virus, encompassing workers who are either infected or in preventive isolation. The number does not include retirees.

Aside from the devastating health impact, the lockdown has dealt a punishing blow to the Spanish economy, with tens of thousands of workers temporarily laid off as sectors like retail, tourism and manufacturing grind to a halt. One of Spain’s biggest employers, El Corte Ingles, said it would temporarily lay off 22,000 workers at its department stores.

At Malaga airport in southern Spain, a gateway to the Costa del Sol tourist region, thousands of travellers waited for flights home, many sleeping on seats or on the floor.

The Bank of Spain said on Wednesday that there had been severe disruption on the economy since early March and a sharp contraction in consumer spending.

Source: Reuters

23/03/2020

Home work triggers demand jump for chips, laptops and network goods

SEOUL/TOKYO (Reuters) – With more employees working from home to help slow the spread of the coronavirus, demand is surging for laptops and network peripherals as well as components along the supply chain such as chips, as companies rush to build virtual offices.

Many firms have withdrawn earnings forecasts, anticipating a drop in consumer demand and economic slump, but performance at electronics retailers and chipmakers is hinting at benefits from the shift in work culture.

Over the past month, governments and companies globally have been advising people to stay safe indoors. Over roughly the same period, South Korea – home of the world’s biggest memory chip maker, Samsung Electronics Co Ltd – on Monday reported a 20% jump in semiconductor exports.

Pointing to further demand, nearly one in three Americans have been ordered to stay home, while Italy – where deaths have hit 5,476 – has banned internal travel. Worldwide, the flu-like virus has infected over 300,000 people and led to almost 15,000 deaths since China first reported the outbreak in December.

“With more people working and learning from home during the outbreak, there has been rising demand for internet services … meaning data centres need bigger pipes to carry the traffic,” said analyst Park Sung-soon at Cape Investment & Securities.

A South Korean trade ministry official told Reuters that cloud computing has boosted sales of server chips, “while an increase in telecommuting in the United States and China has also been a main driver of huge server demand.”

In Japan, laptop maker Dynabook reported brisk demand which it partly attributed to companies encouraging teleworking. Rival NEC Corp said it has responded to demand with telework-friendly features such as more powerful embedded speakers.

Australian electronics retailer JB Hifi Ltd also said it saw demand “acceleration” in recent weeks from both commercial and retail customers for “essential products they need to respond to and prepare” for the virus, such as devices that support remote working as well as home appliances.

CHINA LEAD

China is leading chip demand, analysts said, as cloud service providers such as Alibaba Group Holding Ltd, Tencent Holdings Ltd and Baidu Inc quickly responded to the government’s effort to contain the virus.

“Cloud companies opened their platforms, allowing new and existing customers to use more resources for free to help maintain operations,” said analyst Yih Khai Wong at Canalys.

“This set the precedent for technology companies around the world that offer cloud-based services in their response to helping organisations affected by coronavirus.”

China’s cloud infrastructure build-up has helped push up chip prices, with spot prices of DRAM chips rising more than 6% since Feb. 20, showed data from price tracker DRAMeXchange.

UBS last week forecast average contract prices of DRAM chips to rise as much as 10% in the second quarter from the first, led by a more than 20% jump in server chips.

It said it expects DRAM chips to be modestly under supplied until the third quarter of 2021, with demand from server customers rising 31% both in 2020 and 2021.

SUPPLY DISRUPTION

Concerns over supply disruption has also contributed to a price rise.

“You’ve got lots of OEMs and systems integrators in the global market who have intense demand for memory now,” said Andrew Perlmutter, chief strategy officer at ITRenew, a company that buys and reworks used data centre equipment for resale.

“Nobody is shutting down their factories – it is still production as normal – but people worry about memory supply in particular, so they want to get out ahead of production.”

About 69% of electronics manufacturers have flagged possible supplier delays averaging three weeks, showed a poll on March 13 by industry trade group IPC International.

Half of those polled expected business to normalise by July, and nearly three-quarters pointed to at least October.

Source:Reuters

12/03/2020

Coronavirus: China’s mask-making juggernaut cranks into gear, sparking fears of over reliance on world’s workshop

  • China is now making more than 100 million masks a day, up from 20 million before the coronavirus outbreak, and may start to export more to other countries
  • Mask shortages elsewhere once more raise the debate about an over-reliance on China, with critics pointing to a lack of US industrial policy
China was producing 116 million masks per day of February 29, including a mix of disposable and high-end masks like the American-designed N95 model worn by President Xi Jinping on his trip on Tuesday to Wuhan. Photo: Xinhua
China was producing 116 million masks per day of February 29, including a mix of disposable and high-end masks like the American-designed N95 model worn by President Xi Jinping on his trip on Tuesday to Wuhan. Photo: Xinhua

The Liu family factory has been making diapers and baby products in the Chinese city of Quanzhou for over 10 years, but in February, for the first time, it started making face masks, as demand soared spectacularly due to the coronavirus outbreak.

The business – which employs 100 people in the Southeastern Fujian province – has added two production lines to make up to 200,000 masks a day.
And while the decision was primarily commercial, “encouragement” from the Chinese government – in the form of subsidies, lower taxes, interest-free loans, fast-track approvals for expansion and help alleviating labour shortages – made the decision an obvious one, said Mr Liu who preferred only to give his family name.
“The government is advocating an expansion in production,” Liu said. “With faster approvals, producers need to prioritise the government’s needs over exports.”
WHO declares coronavirus crisis a pandemic
The factory is one of thousands of refitted pop-ups around China making masks and other protective equipment for the first time, part of a massive industrial drive to respond to the spread of the coronavirus.
Before the outbreak, China already made about half the world’s supply of masks, at a rate of 20 million units a day. That rose to 116 million as of February 29, according to China’s state planning agency, a mix of disposable and high-end masks like the American-designed N95 model worn by President Xi Jinping on his trip on Tuesday to Wuhan, the epicentre of the outbreak.

This exponential jump is the result of a wartime-like shift in industrial policy, with Beijing directing its powerful state-owned enterprises to lead the nationwide mask-making effort, and the country’s sprawling manufacturing engine following their lead.

For me, this is the big advantage of China, the speed Thomas Schmitz

“For me, this is the big advantage of China, the speed,” said Thomas Schmitz, president of the China branch of Austrian engineering giant Andritz, which has seen a big uptick in demand for its wet wipe-making machines in recent weeks, also due to the virus. “When you need to run, people know how to run, and this is something which has been lost in other countries since their industrial heydays.”

Chinese oil and gas major Sinopec upped production of mask raw materials such as polypropylene and polyvinyl chloride in January. This week, it set up two production lines in Beijing to produce melt-blown non-woven fabric, intended to make four tonnes of the fabric each day, which can then be used to produce 1.2 million N95 respirators or six million surgical masks a day.

The maker of China’s new J-20 stealth fighter jet, Chengdu Aircraft Industry Group, repurposed part of its factory to design a mask production line, according to local media reports. The Sichuan Daily said 258 of the company’s engineers spent three days fast-tracking development of an assembly line with more than 1,200 components.

Coronavirus: From mysterious origins to a global threat
More than 2,500 companies in China have reportedly started making masks, among them 700 technology companies including iPhone assembler Foxconn and smartphone makers Xiaomi and Oppo, in an extraordinary mobilisation of resources.

The result resembles “the war effort” in the middle of the last century in the United States and western Europe, but arguably no other nation could undergo such a transformation so quickly today.

It is a reminder of what can happen in a centrally-planned economy with a strong manufacturing base, but also brings into sharp focus some of the geopolitical issues which have characterised China’s at-times difficult relationship with the rest of the world, particularly the European Union and US, over the past couple of years.

China’s dominance in manufacturing has become all the more evident as the rest of the world scrambles to shore up their own dwindling medical supplies, leading many to wonder why the world is so dependent on it for vital supplies.

The lesson for Washington is not that we need to emulate the Chinese economic model, but rather that we need to better steward the industrial base in key sectors Rush Doshi

The Italian government, which is dealing with the highest number of coronavirus cases and deaths after China, is to take shipment of 1,000 ventilators, 2 million masks, 100,000 respirators, 200,000 protective suits and 50,000 testing kits from China.
Italian foreign minister Luigi Di Maio said after a phone call with Chinese counterpart Wang Yi, they had agreed the export deal in the same week that European neighbours France and Germany banned masks from being exported because of low domestic supplies.
The Italy export deal showed that “China is emerging as a global public goods provider as the US proves unable and unwilling to lead,” said Rush Doshi, the director of the China Strategy Initiative at the Washington-based Brookings Institute think tank.
“China’s ability to produce what is needed to fight coronavirus is not simply a product of its economic model – it’s also a product of its industrial capacity,” Doshi said. “The US once had this capacity too, but it has lost important parts of it. The lesson for Washington is not that we need to emulate the Chinese economic model, but rather that we need to better steward the industrial base in key sectors.”

The frustration is felt acutely by Michael Einhorn, president of medical equipment distributor Dealmed-Park Surgical in New York, who has been trying to source stock from China for weeks, “but cannot get straight answers” from vendors.

Unaware that Wuhan was still under heavy economic lockdown,
 Einhorn said he placed an order with a private seller in China’s virus-stricken city last week, but that the goods had not been shipped.
“Everyone is running out here, people are panicking in hospitals and we want to be able to help our most important customers,” Einhorn said. “We are dealing with hospitals that do not have products, how in the United States of America in 2020 did this happen?”
With the number of confirmed coronavirus cases in China falling daily, it is not inconceivable that the sort of export deal struck with Italian leaders becomes commonplace, although for now, it deal can be chalked up as a significant public relations coup for Beijing.

The World Medical Association is unable to specify how many masks are required to supply frontline medical staff in virus-hit areas, but said that “this crisis should be a wake up call for politicians and societies to make the necessary investment in emergency preparedness and to look into the vulnerability of our supply chains”.

Australian-listed manufacturer Eagle Health announced on Friday that it had installed production lines at its Xiamen factory in southern China to make 300 million masks a year and said it had already received orders from China and would be securing further larger orders internationally.

The group, which normally makes products including amino acids, protein supplements and lozenges in China, said it would prioritise meeting the large domestic demand, but was aware of an impending global shortage.

Eagle Health has already commenced production of its first order of 3.2 million medical masks for the Yiling Hospital Management Group in China, a process which will take 10 days. It has other smaller orders from Chinese government agencies and expects to receive more orders outside China.

The decision to make more masks came from increased demand. These are opportunities. The global demand for high quality masks will be significant Xu Gang

“The decision to make more masks came from increased demand. These are opportunities,” said chief executive Xu Gang. “The global demand for high quality masks will be significant. Imagine when the schools open. The situation will take some time to peak.”
Last week, the Australian Dental Association said supplies of masks at many practices were expected to run out within four weeks. The Australian government has since arranged a supply of 54 million masks for both the dental and medical industries.
At the same time, the US only has 1 per cent of the 3.5 billion masks it would need to counter a serious outbreak, Bloomberg reported.
While China has no quota on the volume of masks that had to be hived off for local consumption, the government has said domestic demand needs to be prioritised.

Businesses are free to export but overseas demand has yet to explode like it has in China, said Fujian factory owner Liu.

Wendy Min, sales director of Pluscare, a manufacturer based near the virus’ epicentre in Hubei province, said her company is making 200,000 masks per day, much of which are sold to the government, with exports still restricted by partial lockdown of workers and cargo transport.

“We previously exported to Europe, South America and other parts of Asia,” Min said. “But at the moment we can’t export. We are trying to discuss this with the government, but we cannot wait any more – we have to export soon.”

Min said that while she was receiving countless cold calls up until last week from people in China looking for masks, these have stopped, perhaps unsurprising given the abundance in supplies becoming available.

An influx of Chinese-made masks, though, is likely to be welcomed in other virus-stricken parts of the world.

Self-quarantine of all international travellers to Beijing as China fights import of coronavirus
Miguel Luiz Gricheno, CEO of Brazilian mask manufacturer Destra, said that his company is making 30,000 masks a day, but cannot meet local demand due to a lack of supplies, including the non-woven fabric from which masks are made.
“In disposable masks, most Brazilian companies are paralysed due to the lack of raw materials,” Gricheno said. “With the arrival of the coronavirus in Brazil, the demand has increased a lot but the main raw material comes from abroad.”
However, a short-term supply fix will not answer underlying questions about how so many countries found themselves in such dire straits, meaning the geopolitical fallout of the coronavirus will be extensive.
Decades of weak industrial policy helped elect US President Donald Trump, who said he would bring manufacturing jobs back to America at China’s expense. While he has waged a bruising two-year trade war with China in response, the current situation shows just how difficult it will be to change the global manufacturing processes, which are so heavily controlled by China.

One of the great flaws of globalisation is that everyone wanted things cheaper, but did you compromise your health care infrastructure in the process? Stephen Roach

“In the guise of trying to improve efficiency and create value for price-sensitive consumers, we’ve created a global production network that is very difficult to unwind,” said Stephen Roach, a professor of economics at Yale University and a veteran China watcher. “One of the great flaws of globalisation is that everyone wanted things cheaper, but did you compromise your health care infrastructure in the process.
Reuters reported that Trump is considering invoking the emergency provisions of the Defence Production Act, which would allow the government to instruct companies to alter production to help address the domestic shortage of medical supplies like masks. If a company is producing 20 per cent N95 masks and 80 per cent standard masks, the White House could order them to rejig the ratio, an unnamed official said.
The New York Times reported on Wednesday that the White House is preparing an executive order that would allow the government to buy medical supplies from overseas in the hope that it will incentivise companies to make them within the US.

But these changes still do not give Trump the sort of sweeping powers enjoyed by Chinese counterpart Xi.

“When you have a pluralistic, democratic situation that Trump is overseeing, it becomes more unwieldy” to take the steps necessary to address a crisis situation, said Harry Broadman, chair of the emerging markets practise at the Berkeley Research Group and a senior US government official in the 1980s and 1990s.

“That is why I think Trump looks at Xi with envy, because he doesn’t have to deal with a disparity of views or democratic interests,” Broadman said. “I think Trump is at heart a bilateral guy, as you saw with the phase one [US-China] trade deal and the state-to-state purchases. That is why he likes dealing with [Russian President Vladimir] Putin and Xi, because each of them can move mountains. I think Trump is very envious of that ability.”

Source: SCMP

05/03/2020

Special Report – Before coronavirus, China bungled swine epidemic with secrecy

(Reuters) – When the deadly virus was first discovered in China, authorities told the people in the know to keep quiet or else. Fearing reprisal from Beijing, local officials failed to order tests to confirm outbreaks and didn’t properly warn the public as the pathogen spread death around the country.

All this happened long before China’s coronavirus outbreak, which has claimed more than 3,000 lives worldwide in less than three months. For the past 19 months, secrecy has hobbled the nation’s response to African swine fever, an epidemic that has killed millions of pigs. A Reuters examination has found that swine fever’s swift spread was made possible by China’s systemic under-reporting of outbreaks. And even today, bureaucratic secrecy and perverse policy incentives continue undermining Chinese efforts to defeat one of the worst livestock epidemics in modern history.

Beijing’s secretive early handling of the coronavirus epidemic has troubling similarities to its missteps in containing African swine fever, but with the far higher stakes of a human infection. After the coronavirus was found in December 2019 in Wuhan, the capital of Hubei province, local and national officials were slow to sound the alarm and take actions disease experts say are needed to contain deadly outbreaks. Beijing continues to gag negative news and online postings about the disease, along with criticism of the government’s response.

With swine fever, Beijing set a tone of furtiveness across government and industry by denying or downplaying the severity of a disease that the meat industry estimates has shrunk China’s 440-million-hog herd by more than half. The epidemic has taken a quarter of the world’s hogs off the market, hurt livelihoods, caused meat prices to spike globally and pushed food inflation to an eight-year high. (For a graphic on soaring China pork prices, click here)

Cover-ups across China – coupled with underfinancing of relief for devastated pig farmers and weak enforcement of restrictions on pork transport and slaughter – have enabled the spread of the livestock virus to the point where it now threatens pig farmers worldwide, according to veterinarians, industry analysts and hog producers. Since the China outbreak, African swine fever has broken out in 10 countries in Asia.

The vacuum of credible information has made it impossible for farmers, industry and government to tell how and why the disease spread so quickly, making preventive measures difficult, said Wayne Johnson, a Beijing-based veterinarian who runs Enable Ag-Tech Consulting.

“To get it under control, you have to know where it is,” Johnson said.

China’s Ministry of Agriculture and Rural Affairs said in a statement to Reuters that it has repeatedly communicated to all regions the importance of timely and accurate reporting of African swine fever outbreaks and had zero tolerance for hiding and delaying the reporting of cases.

Interviews with farmers, industry analysts and major suppliers to China’s pork sector indicate otherwise. More than a dozen Chinese farmers told Reuters they reported disease outbreaks to local authorities that never made it into Beijing’s official statistics. Those infections are going unreported to central authorities in part because counties lack the cash to follow a separate requirement from Beijing to compensate farmers for pigs killed to control the disease.

Local officials have also avoided reporting outbreaks out of fear of the political consequences. And they have routinely refused to test pigs for the virus when mass deaths are reported, according to interviews with farmers and executives at corporate producers.

A farmer surnamed Zhao, who raises a herd in Henan province, said local officials told him as much when they resisted recording the outbreak he reported on his farm, which wiped out his herd.

“‘We haven’t had a single case of African swine fever. If I report it, we have a case,’” Zhao recalled an official telling him. The local officials could not be reached for comment and a fax seeking comment went unanswered.

When the coronavirus hit, Chinese authorities reacted with a push to reassure the public that all was well. The first reported death from the virus, also known as SARS-CoV-2, came on Jan. 9 – a 61-year-old man in Wuhan. In the following days, Chinese authorities said that the virus was under control and not widely transmissible.

The assurances came despite a lack of reliable data and testing capacity in Wuhan. Testing kits for the disease were not distributed to some of Wuhan’s hospitals until about Jan. 20, an official at the Hubei Provincial Centre for Disease Control and Prevention (Hubei CDC) told Reuters. Before then, samples had to be sent to a laboratory in Beijing for testing, a process that took three to five days to get results, according to Wuhan health authorities.

During that gap, city hospitals reduced the number of people under medical observation from 739 to 82, according to data from Wuhan health authorities compiled by Reuters, and no new cases were reported inside China.

China’s top leadership has dramatically ramped up the public-health response since its early missteps. Beijing built new hospitals in days to treat the sick and launched an unprecedented blockade of the disease epicentre on Jan. 23, first quarantining Wuhan’s 11 million residents at home, then suspending transport in all major cities of Hubei province, home to about 60 million people.

Still, the initial attempts to tightly control information left many people unaware of the risks and unable to take precautions that might have prevented infection – and the suppressing of news and commentary continues today. Wuhan authorities reprimanded eight people they accused of spreading “illegal and false” information about the disease. One of them, 34-year-old doctor Li Wenliang, later died from coronavirus, triggering an angry backlash on social media.

Some critical posts were allowed during a brief and unusual period of online openness in late January. But Beijing’s censors – the Cyberspace Administration of China (CAC) – have since cracked down on posts about Li and other information that authorities deem negative, according to CAC censorship orders sent to online news outlets and seen by Reuters. One CAC notice ordered online outlets to guard against “harmful information.” Another ordered them not to “push any negative story.”

The CAC did not respond to a request for comment sent by fax.

UNREPORTED OUTBREAKS

Beijing had years to prepare for African swine fever. Veterinarians have frequently warned Chinese authorities of the risks since the disease started spreading through the Caucasus region in 2007.

Pigs infected by the virus initially suffer high fever, loss of appetite and diarrhoea. Then their skin turns red as internal haemorrhaging starts and their organs swell, leading to death in as little as a week.

With no vaccine or cure available for the disease, experts recommend that infected pigs and others housed in the same barn are culled, with the carcasses either burned or buried to prevent further infection. Farms, equipment and vehicles that could be contaminated need to be thoroughly cleaned and disinfected.

The first case in China was discovered on Aug. 1, 2018, on a farm near Shenyang, in the northeastern province of Liaoning. Just two weeks later, the virus was found more than 1,000 kilometres to the south in pigs bought by the country’s top pork processor, WH Group(0288.HK), from another northeastern province, Heilongjiang. It took Beijing another two weeks to block pig exports from the whole region, and that and other transport restrictions were poorly enforced, said Johnson and other industry experts. WH Group declined to comment.

One factor behind the epidemic: Chinese consumers prefer fresh pork – straight from the slaughterhouse, rather than chilled. This means hundreds of thousands of live pigs are moved long distances every day to supply processors in major cities. That mass movement spread the disease relentlessly.

Over the first four months of the outbreak, Beijing reported swine-fever cases almost daily as the virus spread from the northeast down through central China, west into Sichuan, and to the huge province of Guangdong by year-end. Veterinarians believe the virus spread quickly because it can survive for weeks on dirty farm equipment or livestock trucks.

And yet gaps in counting and tracking the pig disease have been routine across China. Reuters found a striking absence of reported outbreaks in some of the nation’s most productive pork regions.

For instance, almost none of the reported outbreaks have come from the major hog-raising provinces of Hebei, Shandong and Henan. The three contiguous northern provinces were the source of some 20% of the 700 million pigs China slaughtered in 2017. Many came from backyard farms, which make up a large part of China’s industry and have proven fertile breeding grounds for the disease. Yet each of the three provinces has reported just a single case of African swine fever, despite widespread anecdotal reports of outbreaks there that industry sources believe killed millions of pigs.

Neither Shandong nor Henan authorities responded to requests for comment. Hebei’s department of agriculture said it had “strictly reported and verified the epidemic” and that the disease situation was currently “stable.”

Six Henan farmers told Reuters they reported outbreaks during late 2018 and the first half of 2019. In some cases, local authorities helped deal with dead pigs, they said, but never tested for the virus.

That’s what happened when Wang Shuxi, a farmer in Henan’s Gushi County, lost more than 400 pigs in March 2019. Wang said he had no doubt that his pigs had African swine fever, even though authorities never tested them – and he couldn’t test them himself, because Beijing did not permit the commercial sale of disease test kits at the time.

His pigs showed telltale symptoms of the disease.

“The whole body went red,” he said. He injected the animals with an anti-fever medication to no avail. “At the start, they didn’t eat, and even after injections, it kept returning,” he said. “If you can’t cure it, you know it’s swine fever.”

Provincial and county governments had strong incentives to avoid verifying and reporting outbreaks because of Beijing’s rules on compensating farmers, said Huang Yanzhong, specialist in health governance with the Council on Foreign Relations in New York.

Under an African swine fever contingency plan drawn up in 2015, Beijing ordered the culling of all pigs on farms where the disease is found and on every farm within a three-kilometre radius. The central government raised compensation from 800 yuan ($115) to 1,200 yuan for every pig culled in 2018. Beijing typically promised to provide between 40% and 80% of the money, depending on the province. Localities would fund the rest.

In April 2019, the national agriculture ministry said the central government had allocated 630 million yuan to cull 1.01 million pigs to contain the disease. But that money either wasn’t sufficient or regularly did not get paid out, farmers told Reuters. None of about a dozen farmers who told Reuters they tried to report outbreaks said they had received the promised 1,200 yuan for each pig.

Many got nothing. Wang, the Gushi County farmer, said that almost a year after his pigs died, he has received no recompense. Gushi County officials could not be reached for comment.

Many farmers, eager to salvage value from their herds, have resorted to sending their pigs to slaughter at the first sign of illness – thereby thrusting the virus into the human food supply. The swine fever virus does not threaten people. But its presence in meat – where it can survive for weeks – creates a cycle of infection because many backyard farmers feed pigs with restaurant scraps that include pork.

Garbage feeding caused 23 outbreaks in 2018, Huang Baoxu, deputy director of the China Animal Health and Epidemiology Center, told reporters at a briefing in November that year. His remarks were a rare instance where the central government revealed findings about the spread of the hog virus. The centre declined to comment for this story.

Farmers visiting slaughterhouses dealing in sick pigs also likely picked up the virus on their trucks or equipment, spreading it back to their farms, Johnson said.

In the southern province of Guangxi, the disease raged through the spring of 2019 and early summer, several farmers told Reuters last year. Bobai County was hit hard.

A Bobai farmer surnamed Huang said she lost almost 500 pigs during April and May. She said she tried to report the diseased pigs to the local government but was ignored. The official she spoke to by phone never came to her farm. He told Huang that her pigs could not be saved – but that they didn’t have African swine fever. His advice, she said: “hurry and sell the pigs while they could be sold.”

Huang said she sold more than 30 pigs that she believed had the virus. They looked healthy when she sold them, she said. Others sold obviously sick pigs at very low prices. “Traders took all the pigs, including the sick ones – as long as they could walk to the trucks,” she said.

Huang buried her dead pigs daily for weeks on a relative’s land. Others simply dumped their dead pigs on the roadside or in the mountains, she said. The government provided no help.

Eventually, in late May, Bobai County reported one pig dead from the disease, official statistics show.

Authorities in Guangxi did not respond to a request for comment, and officials in Bobai county’s agriculture bureau could not be reached.

Beijing’s agriculture ministry said in a statement that it had issued an August 2019 order requiring punishments in situations where localities failed to report outbreaks. The ministry said it meted out unspecified discipline to more than 600 local personnel for what it called failures to manage the disease that were uncovered in its investigations of problem areas.

The practice of processing infected hogs has persisted despite new rules from Beijing in July that required slaughterhouses to test all batches of pigs for the virus. The agriculture ministry said in January that 5% of the more than 2,000 samples taken from slaughterhouses in November tested positive for the disease.

An Australian study in September found 48% of meat products confiscated from Asian travellers arriving at its ports and airports contained the virus.

“It showed there’s an awful lot of unrevealed infection not being reported to the authorities,” said Trevor Drew, director of the Australian Animal Health Laboratory.

One such information gap is at the top of the industry – China’s large corporate pig producers. They have also been hit hard by the disease, despite taking more extensive measures than backyard farms to disinfect trucks and require workers to change clothes and shower before and after shifts.

None of China’s top publicly traded producers have publicly announced any swine fever outbreak, but executives of major hog producers acknowledged in interviews with Reuters that their herds were hit by the disease.

Thai conglomerate C.P. Pokphand(0043.HK), one of China’s leading pig producers, has had swine-fever outbreaks on farms in Liaoning, Shandong, Henan and Jiangsu provinces, Bai Shanlin, chief executive of China operations, told Reuters in a rare admission by a listed firm. Executives at three other listed companies, also among China’s top pig producers, acknowledged outbreaks at several farms but declined to be identified.

None of the outbreaks that these large companies have confirmed to Reuters were reported by Beijing, according to a Reuters review of the agriculture ministry’s data on outbreaks.

By August 2019, a year after the first case was found in China, pork prices had passed a record set back in 2016. And they were still climbing rapidly. With a crucial national celebration approaching in October – the 70th anniversary of the founding of the People’s Republic – China’s top leaders took note. Pork is a staple of Chinese cuisine, and rising meat production has been among the many signature achievements in the Communist Party’s decades-long drive to bring prosperity to China.

In a video conference that month with officials from all 34 provinces and regions, Vice Premier Hu Chunhua issued a warning: Sufficient pork was vital to people’s lives and the country’s stability. He called for the urgent recovery of the herd as a key “political task.”

A raft of new production policies and incentives emerged from Beijing. And as the provinces rallied to replenish the nation’s herd, reports of African swine fever grew even more rare. Disease outbreaks reported by the agriculture ministry have tailed off since August. In January, Agriculture Minister Han Changfu said the situation has stabilized.

The government’s statistics are rife with contradictions, however. The ministry has reported 163 outbreaks of African swine fever since August 2018 and said 1.19 million pigs have been culled, a fraction of 1% of China’s total herd. Separate ministry data tracking the herd monthly show that, by September 2019, the herd had shrunk by 41% from the prior year. (For a graphic on the decline in China’s pig herd, click tmsnrt.rs/38lkOcx )

These official estimates of the decline are far too low, three major industry suppliers told Reuters.

“It’s at least 60%,” said Johan de Schepper, managing director of Dutch feed ingredients firm Agrifirm International. His assessment, based on sales to about 100 large pig producers, echoed those of others in the industry.

The virus is still killing pigs nationwide and the herd may still be shrinking, say farmers and industry suppliers. “Half of the herd was gone before this winter, and I think half of the rest will be gone by the end of the season,” said Johnson, the veterinarian, citing conversations with clients from across China.

The problem: Some areas were hit with a second wave of the disease.

Henan province is among them, farmers told Reuters. Last year, about 60% of Henan’s herd was wiped out, mainly in the densely farmed areas in the south and west of the province, analysts at Guotai Junan Securities wrote in an internal memo seen by Reuters. Recently, the memo noted, the virus has moved through east Henan, taking out another 20%.

The vicious disease ruined Zhao, the farmer in central China’s Henan province. The virus struck in October, causing high fever, internal bleeding, vomiting and diarrhoea in his pigs. Just two survived. The other 196 died in a week.

When Zhao tried to report the outbreak to the county veterinary authority, he said, officials strongly encouraged him to keep quiet. A local official reminded him of the national mandate to cull all pigs within three kilometres of an infected farm. That could spell disaster for his neighbours if Zhao spoke up.

“If it’s found to be African swine fever, people nearby will have to stop raising pigs,” Zhao recalled a local official telling him. Zhao decided against filing a report to protect his neighbours, he told Reuters on a recent visit to his farm.

Further up the political hierarchy, the deputy governor of Henan province was quoted by the provincial agriculture bureau as saying in December that Henan had been free of the disease for 14 months, after a single reported case in September 2018. The provincial government did not respond to requests for comment.

The disinformation game continues. Zhao says that when county officials came by his farm in January, they recorded that he still had 180 pigs. In fact, he said, he had just the two hogs that survived the October outbreak.

“The country is being kept in the dark,” he said.

Source: Reuters

04/03/2020

Sanitisers get priority over South Korea’s soju drink in virus crisis

SEOUL (Reuters) – Makers of soju, South Korea’s national drink and one of the world’s best selling spirits, are jumping into the fight on the largest outbreak of coronavirus outside China by sharing their stockpiles of alcohol with makers of sanitisers.

Disinfectants, such as hand sanitisers, are flying off the shelves, along with medical-grade masks, as infections in South Korea have surged past 5,000 in just over a month since its first patient was diagnosed.

South Korean soju makers have responded to soaring ethanol demand for sanitisers by donating the alcohol that goes into the drink, a distilled spirit with 17% to 20% alcohol by volume traditionally based on rice, but now often wheat or potatoes.

“Ethanol demand for disinfection has grown while supply is limited…we have decided to provide it,” an official of Daesun Distilling, based in the southeastern city of Busan, told Reuters.

To banish the virus, the company has pledged to donate 32 tonnes of ethanol for use in disinfecting buildings and public places in Busan and southeastern Daegu, the city at the centre of South Korea’s outbreak.

“We plan to keep donating until the coronavirus outbreak is stabilised and to donate 50 tonnes more,” added the official, who sought anonymity as he was not authorised to speak to media.

South Koreans drink an average of about 12 shots of soju each week, media say, citing industry figures. Ethanol for alcoholic drinks can be produced by fermentation or distillation, typically from grains and plants.

The chemical can also be made from petrochemical feedstock.

Whether used for liquor or disinfection, both have the same chemical structure and can break apart the virus particle, said Lee Duckhwan, a chemistry professor at Sogang University in Seoul, the capital.

“If there’s any difference, that is the liquor tax imposed on ethanol produced by liquor makers,” Lee said.

The virus fears boosted February sales of soaps and hand sanitisers, including those with an alcohol base, to four times the level a year ago, data from a major retailer Lotte Mart shows. Shares of ethanol producers also jumped.

Following Daesun Distilling, Hallasan Soju, based on the resort island of Jeju, also provided 5 tonnes of ethanol to authorities on Tuesday, a company official said.

Source: Reuters

02/03/2020

Think-tank report on Uighur labor in China lists global brands

BEIJING (Reuters) – Tens of thousands of ethnic Uighurs were moved to work in conditions suggestive of “forced labor” in factories across China supplying 83 global brands, and Australian think tank said in a report released on Sunday.

The Australian Strategic Policy Institute (ASPI) report, which cited government documents and local media reports, identified a network of at least 27 factories in nine Chinese provinces where more than 80,000 Uighurs from the western region of Xinjiang have been transferred.

“Under conditions that strongly suggest forced labor, Uighurs are working in factories that are in the supply chains of at least 83 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen,” the think-tank said in the introduction to its report.

The ASPI report said the transfers of labor were part of a state-sponsored program.

It says the workers “lead a harsh, segregated life,” are forbidden to practice religion, and are required to participate in mandarin language classes.

It also says the Uighurs are tracked electronically and restricted from returning to Xinjiang.

China’s Foreign Ministry on Monday said reports the government had violated the Uighurs’ rights were untrue.

“This report is just following along with the U.S. anti-China forces that try to smear China’s anti-terrorism measures in Xinjiang,” spokesman Zhao Lijian at a regular press briefing on Monday.

The United Nations estimates over a million Muslim Uighurs have been detained in camps in Xinjiang over recent years as part of a wide-reaching campaign by Chinese officials to stamp out terrorism.

The mass detentions have provoked a backlash from rights groups and foreign governments, which say the arbitrary nature of the detentions violates human rights.

China has denied the camps violate the rights of Uighurs and say they are designed to stamp out terrorism and provide vocational skills.

“Those studying in vocational centers have all graduated and are employed with the help of our government,” said the Foreign Ministry’s Zhao, “They now live a happy life.”

The 83 global brands mentioned in ASPI’s report either work directly with the factories or source materials from the factories, it said, citing public supplier lists and the factories’ own information.

One of the factories, O-Film Technology Co Ltd, which has manufactured cameras for Apple Inc’s (AAPL.O) iPhones, received 700 Uighur laborers as part of the program in 2017, a local media article cited by the report said.

Apple referred Reuters to an earlier statement that said “Apple is dedicated to ensuring that everyone in our supply chain is treated with the dignity and respect they deserve. We have not seen this report but we work closely with all our suppliers to ensure our high standards are upheld.”

The other companies mentioned in the introduction to ASPI’s report – BMW (BMWG.DE), Gap Inc (GPS.N) , Huawei Technologies Co Ltd, Nike Inc (NKE.N), Samsung and Sony Corp (6758.T) did not respond to requests for comment on Monday.

O-Film Technology did not respond to a request for a comment either.

Volkswagen told Reuters in a statement that none of the listed companies is a direct supplier. It said the company holds “direct authority” in all parts of its business and “respects minorities, employee representation and social and labor standards.”

The report said a small number of the brands, including Abercrombie & Fitch Co [ANF.N], advised vendors to terminate their relationships with these companies in 2020, and others denied direct contractual relationships with the suppliers.

ASPI describes itself as an independent think-tank whose core aim is to provide insight for the Australian government on matters of defense, security and strategic policy.

Source: Reuters

25/02/2020

South Korea to launch mass coronavirus testing, U.S. pledges $1 billion for vaccine

SEOUL/BEIJING (Reuters) – South Korea aims to test more than 200,000 members of a church at the centre of a surge in coronavirus cases, as countries stepped up efforts to stop a pandemic of the c that emerged in China and is now spreading in Europe and the Middle East.

More than 80,000 people have been infected in China since the outbreak began, apparently in an illegal wildlife market in the central city of Wuhan late last year.

China’s death toll was 2,663 by the end of Monday, up 71 from the previous day. But the World Health Organization (WHO) has said the epidemic in China peaked between Jan. 23 and Feb. 2 and has been declining since.

However, fast-spreading outbreaks in Iran, Italy and South Korea, and first cases in several Middle East countries, have fed worries of a pandemic, or worldwide spread of the virus.

“We are close to a pandemic, but there is still hope the epidemics in Iran, Italy, South Korea, etc. can be controlled,” said Raina MacIntyre, head of the Biosecurity Programme at the Kirby Institute at the University of New South Wales.

South Korea has the most virus cases outside China and reported its tenth death and 144 new cases, for a total of 977. President Moon Jae-in said the situation was “very grave”.

In Europe, Italy has become a new front line, with 220 cases reported on Monday, up from just three on Friday. The death toll in Italy is seven.

Global stock markets stabilised on Tuesday after a wave of early selling petered out and Wall Street futures managed a solid bounce after a sharp selloff the previous day on fears about the spreading coronavirus.

“If travel restrictions and supply chain disruptions spread, the impact on global growth could be more widespread and longer lasting,” said Jonas Goltermann, senior economist at research consultancy Capital Economics in London.

PUBLIC ANXIETY

About 68% of South Korea’s cases are linked to the Shincheonji Church of Jesus, where the outbreak is believed to have begun with a 61-year-old woman. It is not known how she became infected.

The church said it would provide authorities the names of all its members in South Korea, estimated by media at about 215,000 people. The government would test them all as soon as possible, the prime minister’s office said.

“It is essential to test all of the church members,” it said in a statement. Authorities said they were testing up to 13,000 people a day.

The U.S. and South Korean militaries have said they may cut back joint training due to the virus, in one of the first concrete signs of its fallout on global U.S. military activities.

The disclosure came during a visit to the Pentagon on Monday by South Korean Defence Minister Jeong Kyeong-doo, who said 13 South Korean troops had the virus.

The U.S. military said a woman who tested positive for the virus had visited one of its bases in the hard-hit city of Daegu. It was the first infection connected to U.S. Forces Korea, which has about 28,500 American troops on the peninsula.

The U.S. military urged troops to “use extreme caution” off base, while the U.S. Centers for Disease Control and Prevention said Americans should avoid non-essential travel to South Korea.

IRAN ISOLATION

Outside mainland China, the outbreak has spread to about 29 countries and territories, with a death toll of about three dozen, according to a Reuters tally.

Afghanistan, Bahrain, Iraq, Kuwait and Oman reported their first new coronavirus cases, all in people who had been to Iran where the toll was 14 dead, media said, and 61 infected.

The outbreak threatens to isolate Iran further. The United Arab Emirates, which has 13 virus cases, suspended all flights with Iran for at least a week, state media said.

Iraq extended an entry ban on travellers from China and Iran to those from five other countries over virus fears, its health ministry said.

In Japan, which has reported four deaths and 850 cases mostly linked to a cruise ship, Health Minister Katsunobu Kato said it was too early to talk about cancelling the Tokyo Olympics due to start on July 24.

The United States pledged $2.5 billion to fight the disease, with more than $1 billion going toward developing a vaccine, with other funds earmarked for therapeutics and the stockpiling of personal protective equipment such as masks.

China reported a rise in new cases in Hubei province, the epicentre of the outbreak. But excluding those, China had just nine new infections on Monday, its fewest since Jan. 20.

With the pace of new infections slowing, Beijing said restrictions on travel and movement that have paralysed economic activity should begin to be lifted.

“Low-risk areas … are to restore order in production and life, cancel transport restrictions and help enterprises,” state planner official Ou Xiaoli told a briefing.

Source: Reuters

24/02/2020

New coronavirus cases rise in Italy, Korea and Iran but fall in China

BEIJING/SEOUL (Reuters) – Italy, South Korea and Iran reported sharp rises in coronavirus infections on Monday, triggering concern from the World Health Organization (WHO), but China relaxed some curbs on movement, including in Beijing, as the rate of new infections there eased.

The virus has put Chinese cities into lockdown, disrupted air traffic to the workshop of the world and blocked global supply chains for everything from cars and car parts to smartphones.

The surge of cases outside mainland China triggered steep falls in global share markets and Wall Street stock futures as investors fled to safe havens. Gold soared to a seven-year high, oil tumbled nearly 4% and the Korean won KRW= fell to its lowest level since August.[MKTS/GLOB]

But U.S. Treasury Secretary Steven Mnuchin cautioned against jumping to conclusions about the impact on the global economy or supply chains, saying it was simply too soon to know.

The World Health Organization (WHO) said it no longer had a process for declaring a pandemic, but that the coronavirus outbreak remained an international emergency.

“We are specially concerned about the rapid increase in cases in … Iran, Italy and the Republic of Korea,” WHO head Tedros Adhanom Ghebreyesus told a news conference in Sweden via video link from Geneva.

South Korea reported 231 new cases, taking its total to 833. Many are in its fourth-largest city, Daegu, which became more isolated with Asiana Airlines (020560.KS) and Korean Air (003490.KS) suspending flights there until next month.

Iran, which announced its first two cases last Wednesday, said it had confirmed 43 cases and eight deaths. Most of the infections were in the Shi’ite Muslim holy city of Qom.

Elsewhere in the Middle East, Bahrain and Iraq reported their first cases and Kuwait reported three cases involving people who had been in Iran.

Saudi Arabia, Kuwait, Iraq, Turkey, Pakistan and Afghanistan imposed restrictions on travel and immigration from Iran. Afghanistan also reported its first case, officials said.

The WHO has been saying for weeks that it dreads the disease reaching countries with weak health systems.

Europe’s biggest outbreak is in Italy, with some 150 infections – compared with just three before Friday – and a fifth death.

‘SEVERE AND COMPLEX’

Scientists around the world are scrambling to analyze the virus, but a vaccine is probably more than a year away.

“Worryingly, it seems that the virus can pass from person to person without symptoms, making it extremely difficult to track, regardless of what health authorities do,” said Simon Clarke, an expert in cellular microbiology at the University of Reading in Britain.

China postponed the annual meeting of its parliament in Beijing.

But there was a measure of relief for the world’s second-largest economy as more than 20 province-level jurisdictions, including Beijing and Shanghai, reported zero new infections, the best showing since the outbreak began.

President Xi Jinping urged businesses to get back to work, though he said the epidemic was still “severe and complex, and prevention and control work is in the most difficult and critical stage”.

Excluding the central Hubei province, center of the outbreak, mainland China reported 11 new cases, the lowest since the national health authority started publishing nationwide daily figures on Jan. 20.

The coronavirus has infected nearly 77,000 people and killed more than 2,500 in China, most in Hubei.

Overall, China reported 409 new cases on the mainland, down from 648 a day earlier, taking the total number of infections to 77,150 cases as of Feb. 23. The death toll rose by 150 to 2,592.

Outside mainland China, the outbreak has spread to about 29 countries and territories, with a death toll of about two dozen, according to a Reuters tally.

Xi said on Sunday the outbreak would have a relatively big, but short-term, impact on the economy and the government would step up policy adjustments to help cushion the blow.

Mnuchin, speaking to Reuters in the Saudi city of Riyadh, said he did not expect the coronavirus to have a material impact on the Phase 1 U.S.-China trade deal.

“Obviously that could change as the situation develops,” he added.

In northern Italy, authorities sealed off the worst-affected towns and banned public gatherings across a wide area, halting the carnival in Venice, where there were two cases.

Austria briefly suspended train services over the Alps from Italy after two travelers coming from Italy showed symptoms of fever.

Both tested negative for the new coronavirus but Austrian Interior Minister Karl Nehammer said a task force would meet on Monday to discuss whether to introduce border controls.

Japan had 773 cases as of late Sunday, mostly on a cruise ship quarantined near Tokyo. A third passenger, a Japanese man in his 80s, died on Sunday.

In South Korea, authorities reported a seventh death and dozens more cases on Monday. Of the new cases, 115 were linked to a church in the city of Daegu.

Drone footage showed what appeared to be hundreds of people queuing in a neat line outside a Daegu supermarket under the winter sunshine to buy face masks. ( tmsnrt.rs/37WP6lA )

Source: Reuters

22/02/2020

China reports fall in new coronavirus cases but concerns grow over rising global spread

BEIJING (Reuters) – China reported a sharp decrease in new deaths and cases of the coronavirus on Saturday but a doubling of infections in South Korea and 10 new cases in Iran added to unease about its rapid spread and global reach.

Mainland China had 397 new confirmed cases of coronavirus infections on Friday, down from 889 a day earlier, but only 31 cases were outside of the virus epicentre of Hubei province, the lowest number since the National Health Commission started compiling nationwide data a month ago.

But infection numbers continued to rise elsewhere, with outbreaks worsening in South Korea, Italy and Lebanon and Iran, prompting a warning from the World Health Organization that the window of opportunity to contain the international spread was closing..

South Korea saw another spike in infections, with 229 new confirmed cases, taking its tally to 433. Officials warned that could rise substantially as more than 1,000 people who attended a church at the centre of the outbreak had shown flu-like symptoms.

Iran, which had no reported cases earlier this week, saw 10 new cases, one of which had died, taking the number to 28 infections and five deaths.

Concerns about the virus weighed on U.S. stocks on Friday, driven by an earlier spike in cases in China and data showing stalling U.S. business activity in February. [MKTS/GLOB]

It has spread to some 26 countries and territories outside mainland China, killing 13 people, according to a Reuters tally.

WHO director-general Tedros Adhanom Ghebreyesus on Twitter expressed concern on Saturday about cases with no clear link to China and called on all countries to invest urgently in preparedness. He made an appeal for $675 million to support the most vulnerable countries.

On Friday, he said now was the time to act decisively.

“We still have a chance to contain it,” he said. “If we don’t, if we squander the opportunity, then there will be a serious problem on our hands.”

An outbreak in northern Italy worsened with its first two deaths, among 17 confirmed cases including its first known instance of local transmission.

Japan confirmed 14 new coronavirus cases on Saturday, among those a teacher who had shown symptoms while working at her school.

Japan is facing growing questions about whether it is doing enough to contain its spread, and concern about whether it could scupper this year’s Tokyo Olympics. Organisers on Saturday postponed the start of training for volunteers as a precaution.

The Bank of Japan’s governor on Saturday shrugged off talk that the widening epidemic is triggering an outflow of funds from Asia.

Online site for coronavirus news – here

GRAPHIC: Tracking the novel coronavirus – here

NEW COMPLICATIONS

The total number of confirmed cases in mainland China rose to 76,288, with the death toll at 2,345 as of the end of Friday. Hubei reported 106 new deaths, of which 90 were in Wuhan.

But new, albeit isolated findings about the coronavirus could complicate efforts to thwart it, including the Hubei government’s announcement on Saturday that an elderly man took 27 days to show symptoms after infection, almost twice the presumed 14-day incubation period.

That follows Chinese scientists reporting that a woman from Wuhan had travelled 400 miles (675 km) and infected five relatives without showing signs of infection, offering new evidence of asymptomatical spreading.

State television on Saturday showed the arrival in Wuhan of the “blue whale”, the first of seven river cruise ships it is bringing in to house medical workers, tens of thousands of which have been sent to Hubei to contain the virus.

Senior Chinese central bank officials sought to ease global investors’ worries about the potential damage to the world’s second-largest economy from the outbreak, saying interest rates would be guided lower and that the country’s financial system and currency were resilient.

Chen Yulu, a deputy governor of the People’s Bank of China, said policymakers had plenty of tools to support the economy, and were fully confident of winning the war against the epidemic.

“We believe that after this epidemic is over, pent-up demand for consumption and investment will be fully released, and China’s economy will rebound swiftly,” Chen told state television.

China has recently cut several key lending rates, including the benchmark lending rate on Thursday, and has urged banks to extend cheap loans to the worst-hit companies which are struggling to resume production and are running out of cash.

The transport ministry said businesses would resume operations on a larger scale later this month and said more roads, waterways and ports were returning to normal.

Online media and Weibo users posted footage and images on Saturday of some malls reopening, including in the cities of Wuxi, Hangzhou and in Gansu province, with shoppers queuing in near-empty streets outside for mandatory temperature checks as trickles of customers in masks perused luxury goods shops and makeup counters.

Some analysts believe China’s economy could contract in the first quarter from the previous three months due to the combined supply and demand shocks caused by the epidemic and strict government containment measures. On an annual basis, some warn growth could fall by as much as half from 6% in the fourth quarter.

However, transport restrictions remain in many areas and while more firms are reopening, the limited data available suggests manufacturing is still at weak levels, with disruptions starting to spillover into global supply chains.

Samsung Electronics (005930.KS) said on Saturday that one coronavirus case had been confirmed at its mobile device factory complex in Gumi, causing a shutdown of its entire facility.

Finance leaders from the Group of 20 major economies were set to discuss risks to the world economy in Saudi Arabia this weekend.

The WHO’s Tedros on Twitter said 13 priority countries in Africa had been identified for help because of their direct links to China or high travel volume. That would include 30,000 personal protective kits on the way to six countries and 60,000 more for 19 states in the weeks ahead.

Source: Reuters

21/02/2020

Exclusive: Westinghouse set to sign pact with Indian firm for nuclear reactors during Trump visit

NEW DELHI (Reuters) – U.S. energy firm Westinghouse is expected to sign a new agreement with state-run Nuclear Power Corporation of India for the supply of six nuclear reactors during U.S. President Donald Trump’s visit next week, officials said, aiming to kickstart a long-running project.

The agreement will lay out timelines and the lead local constructor for the reactors to be built at Kovvada in southern India and also address lingering concerns over India’s nuclear liability law.

The United States has been discussing the sale of nuclear reactors to energy-hungry India since a 2008 landmark civil nuclear energy pact and last year the two governments announced they were committed to the establishment of the six reactors.

Last week representatives from U.S. energy and commerce departments, Westinghouse, the U.S.-India Strategic Partnership Forum and The Nuclear Energy Institute were in India for talks with government officials as part of a commercial mission to promote nuclear exports to India.

“We are encouraging moving forward with Westinghouse and NPCIL to sign a MoU. It certainly is a private industry to private industry, a business to business decision,” Dr. Rita Baranwal assistant secretary for the Office of Nuclear Energy in the U.S. Department of Energy, told Reuters in a phone interview.

“We’re optimistic that an MoU will be signed shortly,” Baranwal, who was part of the mission, said. Once that is cleared the two sides will begin contract negotiations, delivery schedules and pick vendors. The plan for a new MoU has not been previously reported.

Westinghouse did not respond to a request for comment nor did NPCIL. But Indian foreign ministry spokesman Raveesh Kumar said on Thursday Westinghouse and NPCIL were in talks to move forward with the project.

“Following resolution of Westinghouse’s bankruptcy issues, the two sides are in discussion regarding the division of responsibility of the work,” he said.

Trump has made bilateral trade with India a top priority, seeking greater market access for U.S. products from farm goods to motorcycles. Negotiators are trying to put together a limited trade deal before a bigger agreement that Trump said this week will probably happen after the U.S. presidential elections.

Lack of movement on the nuclear reactors has been a sensitive issue, another member of the U.S. delegation said, after Washington made an exception for India by agreeing to provide it civilian nuclear energy technology even though it has not given up its nuclear weapons program.

A longstanding obstacle has been the need to bring Indian liability rules in-line with international norms, which require the costs of any accident to be channeled to the operator rather than the maker of a nuclear power station.

Pittsburgh-based Westinghouse’s plans to supply the AP1000 reactors to India which it has also sold to China were thrown into further doubt when it filed for bankruptcy in 2017 after cost overruns on U.S. reactors.

LIABILITY LAW

Canada’s Brookfield Asset Management bought Westinghouse from Toshiba in August 2018 and has sought progress on the India sale over the next six-seven months, the member of the U.S. delegation said, speaking on condition of anonymity.

India has made clear there is no going back on the 2010 Civil Liability for Nuclear Damage law that foreign governments and vendors say leaves open the possibility of lawsuits against suppliers for nuclear accidents, rather than the operators of the plants.

Prime Minister Narendra Modi’s government has tried to limit the impact of that law by setting up an insurance fund for potential victims of a nuclear accident.

“To be clear, there are still open issues around the liability issue,” Baranwal said, adding it was part of the discussions last week. “I can’t say that it’s been resolved. But we made some progress and understanding was that concerns were at a higher level.”

India expects to generate 22,480 MW of electricity from nuclear stations by 2031 up from the 2019 level of 6780 MW.

But with renewable power dropping in price and the government’s focus on solar power generation, there is a chance nuclear power will remain only small proportion of the country’s energy mix where it stands at 1.9 percent.

V.K. Saraswat, a top member of the government think-tank Niti Aayog said while solar was top priority, the government remained committed to nuclear energy also, as a clean source.

Source: Reuters

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