Archive for ‘travel restrictions’

11/05/2020

Coronavirus: China car sales mark first gain in almost two years after restrictions are eased

  • Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to the country’s largest industry association
  • The number of new energy vehicles (NEVs) sold fell for a tenth straight month to The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP
The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures. Photo: AFP

China’s monthly car sales rose for the first time in almost two years in April, industry data showed, as more customers visited showrooms after the economy began to open up and authorities loosened coronavirus-related travel restrictions.

Sales in April hit 2.07 million units in the world’s biggest car market, up 4.4 per cent from a year earlier, according to data from the China Association of Automobile Manufacturers, the country’s largest industry association.

This follows a 43 per cent drop in March and a sharper 79 per cent plunge in February

 as the pandemic pummelled demand. Monthly sales in China last rose in June 2018.

The number of new energy vehicles (NEVs) sold fell for a tenth straight month to 72,000 units, the data showed. NEVs include battery-powered electric, plug-in hybrid and hydrogen fuel-cell vehicles.

The global industry has been hit hard by the health crisis, but there is growing optimism of improvement in business in China as the country has largely contained the outbreak and started easing lockdown measures.

Volkswagen reported positive China sales in April, while General Motors’ China ventures saw double-digit year-on-year growth last month.

Source: SCMP

30/04/2020

Travel bookings surge up to 1,500 per cent on some sites after Beijing downgrades emergency alert level

  • Outbound flights from Beijing were 15 times higher on one travel site within half an hour of Beijing relaxing quarantine requirements on the city
  • The rebound in bookings spells some hope for online travel providers in China as the country emerges from a pandemic which saw widespread travel restrictions
Passengers arrive from a domestic flight at Beijing Capital Airport on March 27, 2020. Photo: AFP
Passengers arrive from a domestic flight at Beijing Capital Airport on March 27, 2020. Photo: AFP
Within an hour of Beijing downgrading its emergency response level, relaxing quarantine requirements for some arrivals to the Chinese capital city, travel bookings on some sites surged up to 15 times.
Thirty minutes after the announcement on Wednesday, bookings for outbound flights from Beijing were 15 times higher than before the announcement on Qunar, one of the biggest online travel service providers in China. Searches for travel packages and hotel bookings on the platform also increased three-fold, according to a Qunar report.
On Alibaba Group Holding‘s Fliggy travel platform, bookings for flight and trains heading in and out of Beijing increased 500 per cent and 300 per cent respectively one hour after the announcement, compared to the same time a day ago, according to a Fliggy report. Alibaba owns the South China Morning Post.
Bookings for flight and train tickets in Beijing for the upcoming Labour Day long weekend also increased more than 300 per cent and 160 per cent respectively on Chinese group buying site Meituan Dianping on Wednesday after the announcement compared to the day before, while searches for the attractions in the Beijing area on the platform increased almost three times from a week ago, according to Meituan.
“The surge in searches for travel in Beijing was because the lockdown measures in the city were the strictest in the country after work resumed,” said Jiang Xinwei, senior analyst with Analysys. “Consumption among residents was suppressed [during the lockdowns], so there is now a rebound in bookings.”
China’s online travel sites prepare for surge in domestic tourism
21 Mar 2020

The rebound in bookings spells some hope for online travel providers in China as the country gradually emerges from a pandemic which the Chinese government responded to by implementing strict quarantine measures, shutting down tourist attractions and suspending group tours.

Beijing-based consultancy Analysys estimates that China’s national tourism economy lost at least 10 billion yuan (US$1.4 billion) a day on average during the outbreak, with travel service providers like Qunar and Ctrip overloaded with millions of booking changes as well as cancellation and refund requests.
The relaxation of travel restrictions in and out of Beijing also comes ahead of a

five-day break dubbed the “mini golden week”

, which starts on Friday and is the first extended public holiday after Lunar New Year in late January.

In November, the Chinese government lengthened the holiday from the original three days to five to stimulate consumption and encourage travelling amid a slowing economy weighed down by the US-China trade war.

Some cities, such as Huzhou in eastern China’s Zhejiang province and Kunming in southwestern province Yunnan, have issued travel vouchers to stimulate consumption for the tourist industry, according to the Ministry of Culture and Tourism.

Ctrip estimated that there would be more than 86 million domestic tourists during the long weekend – more than double the number of travellers seen during the Ching Ming Festival in April, which recorded 43 million tourists, according to the China Tourism Academy.

However, Jiang said the rebound this week does not mean the Chinese travel industry is out of the red. “The travel industry will recover partially during the public holiday, but this will not be more than 60 per cent [of levels before the pandemic],” he said. “The government needs to do more to signal that travelling is safe and encourage residents to do so.”

Source: SCMP

29/04/2020

Cathay Pacific looks to increase passenger flights in late June if coronavirus travel restrictions are eased

  • Carrier targets return of daily services to major Asian cities and more frequent long-haul services
  • Airline to monitor global situation and adjustments may be made ‘as necessary’
A Cathay Pacific employee stands near the check-in desks at a virtually deserted Hong Kong International Airport. Photo: Sam Tsang
A Cathay Pacific employee stands near the check-in desks at a virtually deserted Hong Kong International Airport. Photo: Sam Tsang
Cathay Pacific Airways has signalled its intent to start reversing its near-total grounding of aircraft because of the coronavirus pandemic, and plans to start increasing its number of passenger flights in the last week of June.
The airline said it hoped to add more long-haul destinations, make flights more frequent, and reinstate some major Asian cities to its daily schedule for the first time in several months, “subject to government travel restrictions”.
Cathay scaled its operations back to a skeleton schedule of 3 per cent of services in early April, and that was extended until June 20. The newly announced increases would take that up to 5 per cent.
The global airline industry has been rocked by the pandemic, which triggered a collapse in air travel demand amid severe travel restrictions and tough quarantine measures.
Tracking the massive impact of the Covid-19 pandemic on the world’s airline industry in early 2020 Singapore Airlines, another of Asia’s major carriers, said last week it would maintain a 96 per cent reduction in flights until the end of June.
Cathay, which has 236 aircraft, currently operates long-haul flights to London Heathrow, Los Angeles, Vancouver and Sydney twice a week, but will increase that to five times a week.

On top of that, Amsterdam, Frankfurt, San Francisco and Melbourne are among the long-haul destinations set to return three times a week.

With regional routes currently operating three times a week, including Tokyo Narita, Taipei, Beijing and Singapore, Asian routes will increase to a daily service. Osaka and Seoul would also return to the network, too.

“We will continue to monitor the developing situation and further adjustments may be made as necessary,” the airline said.

Coronavirus: ban on non-residents leaves Hong Kong airport virtually deserted
Earlier this month, Cathay’s budget unit HK Express extended its total grounding until June 18, having been on hiatus since March 23.

Meanwhile, Boeing has added to warnings of a very slow recovery in air travel, with Dave Calhoun, its CEO, saying demand may not return to 2019 levels for two to three years.

Cathay Pacific’s daily passenger volume has collapsed from regular previous peaks of 100,000 to less than 1,000 in April. Over the past two months, the company has been running more than 250 extra pairs of cargo-only passenger flights to maintain air freight capacity, much of which is accounted for by passenger services.

In a bid to cut costs, most of the Cathay Pacific Group’s 34,200 staff have taken three weeks of unpaid leave. Also, 433 cabin crew in the US and Canada were told they would be laid off, while about 200 pilots in the UK, Australia have been furloughed.

The International Air Transport Association, which revised down pandemic-related revenue losses for the global sector to US$314 billion (HK$2.4 trillion) two weeks ago, said last week the Hong Kong aviation market would take a US$7.5 billion hit this year, a 27 per cent increase on the previous estimate. That equates to a 59 per cent decline in air travel demand, or a loss of almost 31 million passengers, in 2020.

BOCOM International, a financial services company, forecast in a report on Monday that the city’s aviation sector would lose HK$65.2 billion in revenue in 2020, yet Cathay Pacific could emerge as a winner if it survived largely unscathed, given the weakness of rivals at home and in the region plus its dominant position in Hong Kong.

“Hong Kong aviation is at the most critical juncture in its history. Though calamitous, Covid-19 is set to reshape Hong Kong’s aviation industry for the years, possibly decades, to come,” said transportation analyst Luya You.

“Covid-19’s sweeping blows now offer a blank slate for remaining players to regain lost leadership or gain new markets. If [Cathay Pacific] can survive intact from Covid, the carrier could enjoy winner-takes-all growth trajectory in the years following [2020].”

Source: SCMP

05/04/2020

As Trump administration debated travel restrictions, thousands streamed in from China

(Reuters) – In defending his strategy against the deadly coronavirus, President Donald Trump repeatedly has said he slowed its spread into the United States by acting decisively to bar travelers from China on Jan. 31.

“I was criticized by the Democrats when I closed the Country down to China many weeks ahead of what almost everyone recommended. Saved many lives,” he tweeted, for instance, on March 2.

But Reuters has found that the administration took a month from the time it learned of the outbreak in late December to impose the initial travel restrictions amid furious infighting.

During that time, the National Security Council staff, the state department and other federal agencies argued about everything from how best to screen for sick travelers to the economic impact of any restrictions, according to two government officials familiar with the deliberations.

The NSC staff ultimately proposed aggressive travel restrictions to high-level administration officials – but it took at least a week more for the president to adopt them, one of the government officials said.

In meetings, Matthew Pottinger, deputy national security adviser and a China expert, met opposition from Treasury Secretary Steven Mnuchin and National Economic Council director Larry Kudlow, said two former NSC officials and one of the government officials involved in the deliberations. The two top aides were concerned about economic fallout from barring travelers from China, the sources said.

Each day that the administration debated the travel measures, roughly 14,000 travelers arrived in the United States from China, according to figures cited by the Trump administration. Among them was a traveler who came from Wuhan to Seattle in mid-January, who turned out to be the first confirmed case in the United States.

On Jan. 22, Trump downplayed the threat posed by the virus, telling CNBC from the World Economic Forum in Davos, Switzerland, “We have it totally under control.”

The battle within the White House over whether and how to stop infected travelers from China lasted nine more days.

On Jan. 31, Trump issued a proclamation barring entry of non-U.S. citizens, other than the immediate family of citizens and permanent residents, who had traveled to China within the last two weeks. The restrictions have since been expanded to many other countries.

It is unclear when the president was made aware of the NSC’s proposal and what prompted his decision to act, but the decision followed the World Health Organization’s declaration the day before that the epidemic was a “public health emergency of international concern.”

U.S. Centers for Disease Control and Prevention officials told Reuters that they contributed to the decision as part of the administration’s newly convened coronavirus task force.

A Treasury Department spokesperson said that Mnuchin “never objected to the decision to restrict flights from China.”

A White House spokesman, Judd P Deere, said: “Any suggestion that Larry Kudlow objected to restricting flights from China to contain COVID-19 and protect the health of the American people is completely false. Larry fully supported the President’s bold decision.”

In a statement, NSC spokesman John Ullyot said that the council’s early meetings about the coronavirus involved great expertise and robust discussion and were professional.

As of April 4, the coronavirus has infected more than 300,000 people in the United States, and killed over 8,000, according to the Reuters coronavirus tracker. The country has more cases than anywhere else in the world.

The sources for this story, former NSC members, public health officials and others involved in, or briefed on, the administration’s response, spoke on condition of anonymity because they were not authorized to comment on the record.

POPPING A FLARE

The NSC, which operates within the White House to coordinate policies and recommendations involving national security across agencies, was at the center of the effort to formulate the early response to the outbreak.

The council was first notified of the outbreak on the morning of Dec. 31, according to one of the government officials involved, when an NSC official was forwarded an email from a Department of Health and Human Services (HHS) attache in Beijing that had been sent to senior HHS officials the night before.

The “pop-a-flare” notice, as it is known, described strange cases of pneumonia that could not be definitively traced to seasonal flu, said the government official, who saw the message. The email said the Chinese would soon be notifying the World Health Organization, the official said.

On Jan. 3, Dr. Gao Fu, head of China’s disease control agency, informed his U.S. counterpart, Dr. Robert Redfield, director of the CDC, in an emotional telephone call that the outbreak was growing out of control, according to the same federal official and a former NSC official. Both said they had been informed of the details.

Gao’s agency did not respond to a request for comment.

Ullyot, the NSC spokesman, disputed the timeline, saying the council did not learn of the coronavirus outbreak until Jan. 3. The CDC, a part of HHS, confirmed to Reuters that it learned of an outbreak in late December and that the call with Gao occurred Jan. 3.

Health agencies were scrambling to gather information, the two government officials involved in the deliberations said. Questions went back to the U.S. Embassy in Beijing, and experts across the government: How many travelers arrive daily from Wuhan, China, the initial site of the outbreak? What U.S. airports do they fly into? What would be the pros and cons, including costs, of any travel restriction?

In discussions with the NSC, public health officials, including from HHS and CDC, initially argued for the targeted approach of medically screening travelers from Wuhan, as they sifted through information about where and how quickly the virus was spreading, one of the government officials involved said. Public health officials tend not to favor border closures because they can restrict medical response and divert limited resources.

The NSC’s Pottinger was pushing hard for strict travel restrictions – expressing doubt about the truth of the data China was releasing, according to the official.

There was “a lot of yelling, a sign of frustration,” said a former NSC staffer who was not in the meetings but got messages from colleagues in attendance expressing dismay. The person described the messages but did not share them with Reuters. The two current federal officials confirmed the acrimony.

The NSC struggled to reconcile conflicting viewpoints, the two government officials involved said.

The debate delayed the screening of travelers from China by at least a week, one of the officials said. CDC officials ultimately announced enhanced medical screenings for travelers from Wuhan at three international airports, in Los Angeles, San Francisco and New York’s John F. Kennedy, on Jan. 17, expanding them to 20 U.S. airports by Jan. 28.

At one point, during a meeting, Pottinger snapped at health officials that their approach “really has to take a step back,” so that national security interests could shape the response, the official said.

The CDC declined to comment on the debate.

Some former NSC officials who spoke to Reuters traced what they saw as an ineffective response by the council in part to structural changes in 2018 in which former National Security adviser John Bolton had folded the council’s Global Health Security and Biodefense directorate into a larger operation, with the result that pandemic planning was not as great a priority. Others said that, under Bolton, the NSC worked effectively on biopreparedness, but after he departed it lost a number of important experts.

NSC spokesman Ullyot rejected as false the suggestion that the council lacked expertise. The council is staffed by officials with “extensive experience in virology, infectious disease epidemiology, global health security, public health, and emergency response,” he said.

The NSC’s own public health experts were involved in the discussions from the beginning, advocating “early and often” for traveler screening and raising the issue of banning flights from Wuhan, he said.

While the conflict soured the interactions, one of the government officials involved said, data soon emerged that led the health agency officials to agree with Pottinger: A travel restriction for all of China was needed. They saw that there were thousands of travelers arriving daily from Wuhan’s Hubei province to the United States, as well as a rising number of Covid-19 cases reported by the Chinese government beginning in mid-January, the source said.

In its statement to Reuters, the CDC did not directly address what led to its ultimate decision to support the travel restrictions.

By Jan. 24, the staff of the NSC had proposed restricting flights from China, said the government official involved in the deliberations. But as Pottinger met with deputies from other cabinet-level agencies, the recommendation met with resistance because of concerns about spooking the markets and scaring the public, three sources with knowledge of the deliberations told Reuters.

STILL DIVIDED

With opinions still divided, the matter went to top White House aides, at which point Treasury Secretary Mnuchin and National Economic Council director Kudlow argued strongly against the travel restrictions, said two former NSC officials and the government official involved in the deliberations.

In addition to the impact on the stock market, the two top aides expressed concern about the supply chain for everything from semiconductors to ingredients for pharmaceuticals, said one of the government officials involved in the deliberations.

Pottinger was “pleading with Mnuchin and others” to stop travelers from coming, the former NSC official said.

By then, the first known patient in the United States – a man in his 30s who had traveled from Wuhan to Seattle on Jan. 15 – tested positive for the coronavirus disease, COVID-19.

He had slipped through travel screenings because his trip had been broken up, so the Wuhan origin of his trip had not been obvious to customs agents, said the government official with knowledge of the deliberations.

At the World Economic Forum in Davos, Switzerland, President Trump told CNBC on Jan. 22: “It’s one person coming in from China, and we have it under control. It’s going to be just fine.”

On Jan. 29, the Council of Economic Advisers, which advises the president on economic policy, presented an analysis describing a worst-case scenario of what a pandemic and travel restrictions could do to the economy, according to one of the government officials involved in the deliberations, who read it. The report supported Kudlow and Mnuchin’s arguments against such restrictions and “scared everyone,” the source said.

The next day, at an afternoon meeting of the White House’s newly formed coronavirus task force, as well as other attendees, travel restrictions were still being debated, according to the government official involved in the deliberations and a former NSC official who learned of the meeting from former colleagues.

During the meeting, Mick Mulvaney, then President Trump’s chief of staff, entered the room, telling a smaller group, including Pottinger: “The president wants to see you now,” according to the official involved in the deliberations and the former NSC officials.

Mulvaney referred questions to the White House, which did not respond.

Trump issued the order the next day. By then, the novel coronavirus was already carving a lethal path through a Seattle nursing home.

Source: Reuters

12/02/2020

Coronavirus cases fall, experts disagree whether peak is near

BEIJING/SINGAPORE (Reuters) – China reported on Wednesday its smallest number of coronavirus cases since January, lending weight to a prediction by its top medical adviser for the outbreak to end by April, but a global infectious diseases expert warned of the spread elsewhere.

Financial markets took heart from the outlook of the Chinese official, epidemiologist Zhong Nanshan, who said on Tuesday the number of new cases was falling in some provinces, and forecast the epidemic would peak this month, even as the death toll in China rose to more than 1,100 people.

World stocks, which had seen rounds of sell-offs over the virus, surged to record highs on hopes of a peak in cases. The Dow industrials, S&P 500 and Nasdaq all hit new highs, and Asian shares nudged higher on Wednesday.

But the World Health Organization (WHO) has warned that the epidemic poses a global threat akin to terrorism and one expert coordinating its response said while the outbreak may be peaking at its epicentre in China, it was likely to spread elsewhere in the world, where it had just begun.

“It has spread to other places where it’s the beginning of the outbreak,” the official, Dale Fisher, head of the Global Outbreak Alert and Response Network coordinated by the WHO, said in an interview in Singapore.

“In Singapore, we are at the beginning of the outbreak.”

Singapore has reported 47 cases and worry about the spread is growing. Its biggest bank, DBS (DBSM.SI), evacuated 300 staff from its head office on Wednesday after a confirmed coronavirus case in the building.

Hundreds of cases have been reported in dozens of other countries and territories around the world, but only two people have died outside mainland China – one in Hong Kong and another in the Philippines.

WHO chief Tedros Adhanom Ghebreyesus said on Tuesday the world had to “wake up and consider this enemy virus as public enemy number one” and the first vaccine was 18 months away.

In China, total infections have hit 44,653, health officials said, including 2,015 new confirmed cases on Tuesday. That was the lowest daily rise in new cases since Jan. 30.

The number of deaths on the mainland rose by 97 to 1,113 by the end of Tuesday.

But doubts have been aired on social media about how reliable the figures are, after the government last week amended guidelines on the classification of cases.

‘STAY HOPEFUL’

The biggest cluster of cases outside China is aboard the Diamond Princess cruise ship quarantined off Japan’s port of Yokohama, with about 3,700 people on board. Japanese officials on Wednesday said 39 more people had tested positive for the virus, taking the total to 175.

One of the new cases was a quarantine officer.

Thailand said it was barring passengers from another cruise ship, MS Westerdam, from disembarking, the latest country to turn it away amid fears of the coronavirus, despite no confirmed infections on board.

“We try to stay hopeful,” American passenger Angela Jones told Reuters in a video recording. “But each day, that becomes a little bit more difficult, when country after country rejects us.”

Echoing the comparison with the fight against terrorism, China’s state news agency Xinhua said late on Tuesday the epidemic was a “battle that has no gunpowder smoke but must be won”.

The epidemic was a big test of China’s governance and capabilities and some officials were still “dropping the ball” in places where it was most severe, it said, adding: “This is a wake-up call.”

The government of Hubei, the central province at the outbreak’s epicentre, dismissed the provincial health commission’s Communist Party boss, state media said on Tuesday, amid mounting public anger over the crisis.

China’s censors had allowed criticism of local officials but have begun cracking down on reporting of the outbreak, issuing reprimands to tech firms that gave free rein to online speech, Chinese journalists said.

The pathogen has been named COVID-19 – CO for corona, VI for virus, D for disease and 19 for the year it emerged. It is suspected to have come from a market that illegally traded wildlife in Hubei’s capital of Wuhan in December.

The city of 11 million people remains under virtual lockdown as part of China’s unprecedented measures to seal infected regions and limit transmission routes.

Travel restrictions that have paralysed the world’s second-biggest economy have left Wuhan and other Chinese cities resembling ghost towns.

Even if the epidemic ends soon, it has taken a toll of China’s economy, with companies laying off workers and needing loans running into billions of dollars to stay afloat. Supply chains for makers of items from cars to smartphones have broken down.

ANZ Bank said China’s first-quarter growth would probably slow to 3.2% to 4.0%, down from a projection of 5.0%.

The likely slowdown in China could shave 0.1 to 0.2 percentage points off both euro zone and British growth this year, credit rating agency S&P Global estimated.

Source: Reuters

05/02/2020

India tells Chinese guests to stay away from car show

Car and model at annual India motor showImage copyright GETTY IMAGES
Image caption A model displays a car at the annual Indian Auto Expo

Chinese attendees are not welcome at India’s Auto Expo next week due to concerns about the coronavirus.

Chinese guests are prevented from attending the show because of “government policy” an Indian Society of Automobile Manufacturers (SIAM) spokeswoman said.

Yet Chinese cars will be on display.

Other events across Asia will be missing the large delegations that usually come from Chinese firms because of travel restrictions.

Changing car markets

India and China have much at stake in spurring domestic car sales as well as exports, making such industry events vital to drum up business.

New Indian car sales fell 16% last year and China, the world’s largest car market, saw an 8% dip as both markets saw increased turnover in used cars. However there is interest in newer models in the electric vehicle segment, according to Chinese market consultancy LMC Automotive and SIAM figures.

India’s Tata Motors, owner of the Land Rover and Jaguar brands, has developed electric car models for sale at home and abroad, while China’s SAIC Motor and Great Wall Motor also offer electric vehicles for the domestic and export markets. That makes auto shows like the one in India next week important venues to showcase the newest models.

Ripple effect

With hotels and conference fees paid in advance and lunch and dinner meetings arranged months earlier, missing a big industry show has a major ripple effect on economic activity. Events like the Auto Expo in suburban New Delhi, or the Singapore air show due to take place next week draw thousands of out-of-town guests.

In China, the conference circuit has come to a standstill with over 20,000 infections and more than 420 people dead as the virus spreads from the epicentre of the city of Wuhan.

In the case of the Singapore Airshow organisers have faced cancellations by vendors from China, including aircraft maker Comac, and reduced attendance by companies from elsewhere in the world concerned about the spread of the virus outside of China. Singapore has reported 24 cases. India to date has seen three coronavirus cases.

To mitigate the impact, both events have highlighted plans to screen throngs of guests for fever and ensure thorough sanitation measures as well as access to medical care to ensure they can carry on even at reduced attendance.

Source: The BBC

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