Chindia Alert: You’ll be Living in their World Very Soon
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The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.
But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.
The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.
Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.
Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.
Coronavirus: Is the gig economy dead, and should the self-employed worry?
Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.
But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.
Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.
Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.
Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing
“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”
Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.
“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”
The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.
It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin
Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”
Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
Media caption Americans are taken from the docked ship to Haneda airport in Tokyo
Two planes carrying hundreds of US citizens from a coronavirus-hit cruise ship have left Japan, officials say.
One plane has landed at a US Air Force air base in California, and its passengers will be isolated at military facilities for 14 days.
There were some 400 Americans on board the Diamond Princess. The ship with some 3,700 passengers and crew has been in quarantine since 3 February.
Meanwhile, China reported a total of 2,048 new cases on Monday.
Of those new cases, 1,933 were from Hubei province, the epicentre of the outbreak.
More than 70,500 people across China have been infected by the virus. In Hubei alone, the official number of cases stands at 58,182, with 1,692 deaths. Most new cases and deaths have been reported in Wuhan, Hubei’s largest city.
In other developments:
In Japan, a public gathering to celebrate the birthday of new Emperor Naruhito later this week has been cancelled, due to concerns over the spread of the virus while organisers of the Tokyo marathon due to take place on 1 March are considering whether to cancel the amateur part of the race, reports say
In China, the National People’s Congress standing committee said it would meet next week to discuss a delay of this year’s Congress – the Communist Party’s most important annual gathering – because of the outbreak
At the weekend, an American woman tested positive for the virus in Malaysia after leaving a cruise liner docked off the coast of Cambodia
A Russian court has ordered a woman who escaped from a quarantine facility to go back and stay there until she is confirmed to be disease-free, Fontanka news agency reports. Alla Ilyina has until Wednesday to return
What’s happening on the Diamond Princess?
The cruise ship was put in quarantine in Japan’s port of Yokohama after a man who disembarked in Hong Kong was found to have the virus.
On Monday, Japanese officials said there were 99 new cases of infections on board the ship, bringing the total to 454 confirmed cases. It is the largest cluster of cases outside China.
A Russian woman who was on board and tested positive is thought to be the first Russian national to contract the virus after the two previous cases found in Russia were Chinese nationals, Reuters news agency reports.
She will be taken to a hospital for treatment, the Russian embassy in Japan said.
At least 40 US citizens who were on board are infected and will be treated in Japan, Dr Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases told US broadcaster CBS.
Image copyright AFPImage caption Those bound for the US left from Tokyo’s Haneda Airport
The two aircraft chartered by the US government left Tokyo’s Haneda Airport in the early hours of Monday. The second flight was due to land at another base in Texas.
More than 300 passengers are being repatriated voluntarily, the US state department said. Fourteen of them were reported during transit to have tested positive for the virus and were being kept separate from the other passengers, it said.
we would like to just finish the quarantine on the ship as planned, decompress in a non-quarantine environment in Japan for a few days, then fly back to the U.S. pursuant to our own arrangements. What’s wrong with that?
The smartphones were distributed so people could use an app, created by Japan’s health ministry, which links users with doctors, pharmacists and mental health counsellors. Phones registered outside of Japan are unable to access the app.
Other evacuation flights have been arranged to repatriate residents of Israel, Hong Kong and Canada. On Monday, Australia announced that it would evacuate 200 of its citizens too.
What is happening in China?
According to official figures for 16 February, 100 people died from the virus in Hubei, down from 139 on Saturday.
The Chinese authorities are tightening curbs on movement to combat the outbreak. People in Hubei province, which has 60 million people, have been ordered to stay at home, though they will be allowed to leave in an emergency.
In addition, a single person from each household will be allowed to leave the building or compound they live in every three days to buy food and essential items.
On housing estates, one entrance will be kept open. It will be guarded to ensure that only residents can enter or leave.
All businesses will stay closed, except chemists, hotels, food shops and medical services.
“The effects of epidemic prevention and control in various parts of the country can already be seen.”
The proportion of infected patients considered to be in a “serious condition” has dropped nationwide from more than 15% to just over 7%, according to China’s State Council.
Taiwan has reported a death from the illness – a taxi driver, 61, who had not travelled abroad recently but had diabetes and hepatitis B, Health Minister Chen Shih-chung said.
The minister said many of his passengers had come from China.
Outside China, there have been more than 500 cases in nearly 30 countries. Four others have died outside mainland China – in France, Hong Kong, the Philippines and Japan.
Meanwhile, a plane carrying 175 evacuated Nepalis, mostly students, has arrived in Kathmandu from Wuhan.
SIHANOUKVILLE, Cambodia (Reuters) – U.S. President Donald Trump has thanked Cambodia for taking in the castaway cruise ship MS Westerdam in a rare message to a country that is one of China’s closest allies and has often been at odds with Washington.
Five countries turned away the Westerdam, worried its passengers could be carrying the coronavirus despite it having no known cases before Cambodia’s authoritarian prime minister, Hun Sen, agreed the passengers could disembark there.
“Thank you to the beautiful country of Cambodia for accepting the @CarnivalCruise ship Westerdam into your port. The United States will remember your courtesy,” Trump said in a post on Twitter late on Friday.
The Westerdam, operated by Carnival Corp (CCL.N) unit Holland America Inc, docked in the port of Sihanoukville on Thursday after being shunned for two weeks.
Its 1,455 passengers began to disembark on Friday.
The passengers were tested regularly on the cruise ship and Cambodia also tested 20 once it docked. None were found to have the new coronavirus that has killed more than 1,500 people, the vast majority in China.
Cambodia’s Hun Sen has often sparred with the United States over its accusations of human rights abuses and its condemnation of a crackdown on the opposition since 2017.
He has brought Cambodia much closer to China, which has provided billions of dollars in aid for infrastructure projects and stood by Cambodia in the face of Western criticism.
“We are very grateful that Cambodia opened its port … We hope that other countries can be equally as helpful to people in need,” U.S. Ambassador to Cambodia W. Patrick Murphy told reporters at the Westerdam.
MOUNTING SCRUTINY
The cruise line industry has come under mounting scrutiny amid the virus outbreak after more than 200 people tested positive for the infection onboard a ship quarantined in Japan.
Two ships, German-owned AIDAvita and the Norwegian Jade, were denied entry by Vietnam amid the worries. [L4N2AF052]
These two have, however, docked at Thai ports.
AIDAvita docked at Laem Chabang port on Friday, a Thai Marine Department official told Reuters.
“The ship will leave the port tomorrow.”
The Jade, operated by Norwegian Cruise Line Holdings Ltd (NCLH.N), docked at Ko Samui on Saturday morning, another Thai Marine Department official said.
Researchers say system should allow them to track any sound-emitting source – from nuclear subs to whales – using a simple listening device mounted on a buoy, underwater drone or ship
Breakthrough builds on previous work by team from Beijing and San Diego
A new AI system developed by Chinese and US scientists could make detecting nuclear submarines possible even in unknown waters. Photo: Xinhua
Scientists from China and the United States have developed a new artificial intelligence
-based system that they say will make it easier to detect submarines in uncharted waters.
The technology builds on earlier work by the team, led by Dr Niu Haiqiang from the Institute of Acoustics at the Chinese Academy of Sciences in Beijing, which saw them develop a deep-learning algorithm that could improve the speed and precision of detection.
The algorithm, however, needs a large amount of data to work, so its use is limited to waters that have already been fully charted. In contrast, the upgrade works in all waters, charted or otherwise.
Even killer whales will be unable to hide from the new technology. Photo: Reuters
Niu and his colleagues, who included scientists from the Scripps Institution of Oceanography at the University of California San Diego, started by developing a simulator to generate a wide range of virtual environments from which the algorithm was able to learn.
Once it had assimilated that information, the simulator was able to analyse real-life data taken from the world’s oceans and seas, the team said in a paper published in the July issue of The Journal of the Acoustical Society of America.
It is now able to help a single hydrophone locate more than 80 per cent of underwater targets within an uncharted area with a margin of error of less than 10 metres (33 feet), the paper said.
Chinese monitoring devices installed near US submarine base
The researchers said the new technology should allow them to track any sound-emitting source – be it a nuclear submarine, a whale or even an emergency beeper from a crashed aircraft – using a simple listening device mounted on a buoy, underwater drone or ship.
The scientists worked together to improve the sensitivity and accuracy of passive underwater surveillance technology, according to the academy’s website.
The new technology might also be able to detect emergency beepers from crashed aircraft. Photo: AFP
Locating targets in unfamiliar waters is challenging because the AI relies on environmental data parameters such as underwater currents and seabed landscapes.
But obtaining such information is not easy, and often impossible.
For instance, the United States does not allow China to collect information in waters close to its west coast, while Beijing forbids the US from getting too close to its military facilities in the South China Sea.
Murder suspect ‘caught by AI software that spotted dead person’s face’
Professor Zhang Renhe, a researcher at the Institute of Acoustics who was not involved in the study, said the latest development was encouraging.
“AI can be a useful assistant to underwater target recognition,” he said. “In a way it is similar to the speech recognition technology on our mobile phones.”
But he said scientists were still wrestling with exactly how the technology worked.
“It is like a black box with some inner workings that are still unexplained,” he said.
Researchers were now working on ways to combine the new AI technology with the physical models for underwater target detection that have been developed in recent decades, Zhang said.
“This is a new frontier for fundamental science,” he said. “It requires international cooperation.”
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 