Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
WASHINGTON (Reuters) – U.S. President Donald Trump has little choice but to stick with his Phase 1 China trade deal despite his anger at Beijing over the coronavirus pandemic, new Hong Kong security rules, and dwindling hopes China can meet U.S. goods purchase targets, people familiar with his administration’s deliberations say.
The U.S.-China trade negotiations took more than two years, heaped tariffs on $370 billion of Chinese products, whipsawed financial markets and dimmed global growth prospects well before the coronavirus outbreak crushed them.
In recent weeks, suggestions that Trump may cancel the deal have emanated from the White House almost daily, and businesses, investors, and China trade watchers are hanging on to every word and tweet.
But on Friday, when Trump said the United States would start dismantling trade and travel privileges for Hong Kong, he did not mention the deal. Stock markets heaved a sigh of relief, with the S&P 500 .SPX reversing losses.
Talking tough on China and criticizing the Obama administration’s more measured approach is a key part of Trump’s re-election strategy. Sticking with the pact may mean accepting that China is likely to fall short of purchase commitments for U.S. agricultural goods, manufactured products, energy and services – goals that many said were unrealistic here even before the pandemic.
Canceling the deal, though, would reignite the nearly two-year U.S.-China trade war at a time U.S. unemployment is at its worst since the 1930s Great Depression.
The next U.S. step would likely be reviving previously planned but canceled tariffs on some $165 billion worth of Chinese consumer goods, including Apple (AAPL.O) cellphones and computers, toys and clothing – all ultimately paid by U.S. companies and passed on to consumers. Beijing would retaliate with tariffs on U.S. goods, fueling more market turmoil and delaying recovery.
“He’s stuck with a lemon. He gets an empty agreement if he sticks with it, and he gets more actions that create an economic drag and more volatility if he abandons it,” said one person briefed on the administration’s trade deliberations.
U.S. goods exports here to China in the first quarter were down $4 billion from the trade war-damaged levels a year earlier, according to U.S. Census Bureau data.
The Peterson Institute of International Economics estimates here that during the first quarter, China made only about 40% of the purchases it needed to stay on target for a first-year increase of $77 billion over 2017 levels, implying an extremely steep climb in the second half.
Leaving the deal now would not buy a lasting political bounce for Trump in manufacturing-heavy swing states with five months to go before the presidential election, analysts say.
COMPLEX RELATIONSHIP
Trump blames China for failing to contain the coronavirus and has repeatedly said the deal, including its pledges to boost U.S. exports to China by $200 billion over two years, no longer means as much to him with U.S. coronavirus deaths now over 100,000 and job losses piling up.
Trump said on Friday that China was “absolutely smothering Hong Kong’s freedom,” but refrained from harsh sanctions that could put the trade deal in jeopardy, taking milder steps to revoke the territory’s separate travel and customs benefits from China.
Claire Reade, a former U.S. trade negotiator, said Trump’s “peripheral steps” would not deter Beijing from proceeding with the security law, as it regards Hong Kong as a core national security issue.
“Probably the most significant thing from the trade perspective is that the Phase 1 trade deal is – for now anyway – unaffected,” said Reade, senior counsel with Arnold and Porter law firm in Washington.
White House Economic Adviser Larry Kudlow criticized Beijing last week, but on trade told CNBC: “It’s a complex relationship. The China Phase 1 trade deal does continue to go on for the moment and we may be making progress there.”
U.S. Trade Representative Robert Lighthizer has recently cited here “continuing progress” in the deal, after China welcomed U.S. blueberries, barley, beef and dairy products. He has touted the deal’s dispute settlement mechanism, which provides for regular consultations on compliance with Beijing’s commitments on intellectual property protections, financial services, agriculture standards and purchases.
U.S.-China flashpoints on Hong Kong, Taiwan and other issues did not derail negotiations that resulted in new concessions from China, said Jamieson Greer, who served as Lighthizer’s chief of staff until April.
“Some of these security and human rights challenges have certainly complicated the atmosphere, but the trade agreement can still provide a set of rules governing important aspects of the trade relationship,” said Greer, now an international trade partner at the King and Spalding law firm.
Another person familiar with USTR thinking said the agency “needs to make Phase 1 look good. They want to show that progress is being made. The president looks at the China relationship much more broadly.”
WASHINGTON (Reuters) – President Donald Trump said on Wednesday he believes China’s handling of the coronavirus is proof that Beijing “will do anything they can” to make him lose his re-election bid in November.
In an interview with Reuters in the Oval Office, Trump talked tough on China and said he was looking at different options in terms of consequences for Beijing over the virus. “I can do a lot,” he said.
Trump has been heaping blame on China for a global pandemic that has killed at least 60,000 people in the United States according to a Reuters tally, and thrown the U.S. economy into a deep recession, putting in jeopardy his hopes for another four-year term.
The Republican president, often accused of not acting early enough to prepare the United States for the spread of the virus, said he believed China should have been more active in letting the world know about the coronavirus much sooner.
Asked whether he was considering the use of tariffs or even debt write-offs for China, Trump would not offer specifics. “There are many things I can do,” he said. “We’re looking for what happened.”
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“China will do anything they can to have me lose this race,” said Trump. He said he believes Beijing wants his Democratic opponent, Joe Biden, to win the race to ease the pressure Trump has placed on China over trade and other issues.
“They’re constantly using public relations to try to make it like they’re innocent parties,” he said of Chinese officials.
He said the trade deal that he concluded with Chinese President Xi Jinping aimed at reducing chronic U.S. trade deficits with China had been “upset very badly” by the economic fallout from the virus.
A senior Trump administration official, speaking on condition of anonymity, said on Wednesday that an informal “truce” in the war of words that Trump and Xi essentially agreed to in a phone call in late March now appeared to be over.
The two leaders had promised that their governments would do everything possible to cooperate to contain the coronavirus. In recent days, Washington and Beijing have traded increasingly bitter recriminations over the origin of the virus and the response to it.
However, Trump and his top aides, while stepping up their anti-China rhetoric, have stopped short of directly criticizing Xi, who the U.S. president has repeatedly called his “friend.”
Trump also said South Korea has agreed to pay the United States more money for a defense cooperation agreement but would not be drawn out on how much.
“We can make a deal. They want to make a deal,” Trump said. “They’ve agreed to pay a lot of money. They’re paying a lot more money than they did when I got here” in January 2017.
The United States stations roughly 28,500 troops in South Korea, a legacy of the 1950-53 Korean War that ended in an armistice, rather than a peace treaty.
Trump is leading a triage effort to try to keep the U.S. economy afloat through stimulus payments to individuals and companies while nudging state governors to carefully reopen their states as new infections decline.
Trump sounded wistful about the strong economy that he had enjoyed compared with now, when millions of people have lost their jobs and GDP is faltering.
“We were rocking before this happened. We had the greatest economy in history,” he said.
He said he is happy with the way many governors are operating under the strain of the virus but said some need to improve. He would not name names.
Trump’s handling of the virus has come under scrutiny. Forty-three percent of Americans approved of Trump’s handling of the coronavirus, according to the Reuters/Ipsos poll from April 27-28.
But there was some good coronavirus news, as Gilead Sciences Inc said its experimental antiviral drug remdesivir was showing progress in treating virus victims.
Trump has also seeking an accelerated timetable on development of a vaccine.
“I think things are moving along very nicely,” he said.
At the end of the half-hour interview, Trump offered lighthearted remarks about a newly released Navy video purportedly showing an unidentified flying object.
“I just wonder if it’s real,” he said. “That’s a hell of a video.”
Researchers conclude that the virus was circulating undetected in France in February
Findings highlight the difficulties governments face in tracing the source of coronavirus outbreaks
Researchers in France have carried out genetic analysis and found that the dominant types of the viral strains in the country did not come from China or Italy. Photo: AP
The coronavirus outbreak in France was not caused by cases imported from China, but from a locally circulating strain of unknown origin, according to a new study by French scientists at the Institut Pasteur in Paris.
Genetic analysis showed that the dominant types of the viral strains in France belonged to a clade – or group with a common ancestor – that did not come from China or Italy, the earliest hotspot in Europe.
“The French outbreak has been mainly seeded by one or several variants of this clade … we can infer that the virus was silently circulating in France in February,” said researchers led by Dr Sylvie van der Werf and Etienne Simon-Loriere in a non-peer reviewed paper released on bioRxiv.org last week.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths.
France detected the virus in late January, before any other country in Europe. A few patients with a travel history that included China’s Hubei province were sampled on January 24 and tested positive.
The Covid-19 pandemic has infected more than 128,000 people in France and caused more than 23,000 deaths. Photo: AFP
The French government took quick and decisive measures to trace contacts of the infected people and shut down the chance of further infection.
However, these strains were not found in patients tested after the initial imported cases, suggesting “the quarantine imposed on the initial Covid-19 cases in France appears to have prevented local transmission”, the researchers said.
The Pasteur institute collected samples from more than 90 other patients across France and found the strains all came from one genetic line. Strains following this unique path of evolution had so far only been detected in Europe and the Americas.
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The earliest sample in the French clade was collected on February 19 from a patient who had no history of travel and no known contact with returned travellers.
Several patients had recently travelled to other European countries, the United Arab Emirates, Madagascar and Egypt but there was no direct evidence that they contracted the disease in these destinations.
To the researchers’ surprise, some of the later strains collected were genetically older – or closer to the ancestral root – than the first sample in this clade.
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A possible explanation, according to the authors, was that local transmission had been occurring in France for some time without being detected by health authorities.
The French government may have missed detecting the transmission. According to the researchers, a large proportion of those patients might have had mild symptoms or none at all.
The researchers also found that three sequences later sampled in Algeria were closely related to those in France, suggesting that travellers from France might have introduced the virus to the African country and caused an outbreak.
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Benjamin Neuman, professor and chair of biological sciences with the Texas A&M University-Texarkana, said the French strains might have come from Belgium, where some sequences most closely related to the original strain from China were clustered.
“Since the earliest European strains of [the coronavirus] Sars-CoV-2 seem to be associated with Belgium, the idea that the virus spread from Belgium to both Italy and France at around the same time seems plausible, as this paper contends,” he said.
France is the latest in a growing number of countries and areas where no direct link between China and local outbreaks could be established.
The dominant strains in Russia and Australia, for instance, came from Europe and the United States, respectively, according to some studies.
These findings have drawn fire from some politicians who have tried to deflect domestic anger over their handling of the crisis by blaming China.
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“So now the Fake News @nytimes is tracing the CoronaVirus origins back to Europe, NOT China. This is a first!” he tweeted on April 11, referring to a story about the studies in the The New York Times’ science section.
The findings also highlight the difficulties governments face in tracing the source of coronavirus outbreaks.
Less-developed countries may never know where their strains came from due to inadequate testing and sequencing capability.
India, for example, has released the genetic sequence of fewer than 40 samples to the public so far, a small number considering its huge population.
Most of the strains sampled in 35 early cases came from clades that could be traced to Italy and Iran, with only a few from China, according to a recent study. But researchers were not able to track further because of the lack of data.
A scientist on the study, Dr Mukesh Thakur, of the Zoological Survey of India, said it was too early to rule out China as the source of outbreaks in India because the number of samples at hand was limited.
A 20-year-old student studying medicine in Wuhan, for instance, might have come in contact with many people on the way home before she was tested positive on January 30.
Thakur said local media reported that the Indian government quarantined 3,500 people possibly linked to three positive cases imported from Wuhan.
“God knows how many of them tested positive in the subsequent stages,” Thakur said in an email response to the Post’s queries on Tuesday.
Some prominent scientists, including Francis Collins, director of the US National Institutes of Health, said the virus might have been spreading quietly in humans for years, or even decades, without causing a detectable outbreak.
The virus had thus adapted well to the human body. Some genes regulating its binding to host cells were similar, or even identical, to those found in some other highly infectious human viruses, such as HIV and Ebola.
According to some estimates, the ancestor of Sars-CoV-2, the virus causing Covid-19, might have left bats between 50 and 70 years ago. A recent study by a team of geneticists in Oxford University estimated the first outbreak of the current pandemic could have occurred as early as September last year.
They found that the dominant strains circulating in China and Asia were genetically younger than some popular strains in the United States.
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.
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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.”
WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday his government is trying to determine whether the coronavirus emanated from a lab in Wuhan, China, and Secretary of State Mike Pompeo said Beijing “needs to come clean” on what they know.
The source of the virus remains a mystery. General Mark Milley, chairman of the Joint Chiefs of Staff, said on Tuesday that U.S. intelligence indicates that the coronavirus likely occurred naturally, as opposed to being created in a laboratory in China, but there is no certainty either way.
Fox News reported on Wednesday that the virus originated in a Wuhan laboratory not as a bioweapon, but as part of China’s effort to demonstrate that its efforts to identify and combat viruses are equal to or greater than the capabilities of the United States.
This report and others have suggested the Wuhan lab where virology experiments take place and lax safety standards there led to someone getting infected and appearing at a nearby “wet” market, where the virus began to spread.
At a White House news conference Trump was asked about the reports of the virus escaping from the Wuhan lab, and he said he was aware of them.
“We are doing a very thorough examination of this horrible situation that happened,” he said.
Asked if he had raised the subject in his conversations with Chinese President Xi Jinping, Trump said: “I don’t want to discuss what I talked to him about the laboratory, I just don’t want to discuss, it’s inappropriate right now.”
Trump has sought to stress strong U.S. ties with China during the pandemic as the United States has relied on China for personal protection equipment desperately needed by American medical workers.
As far back as February, the Chinese state-backed Wuhan Institute of Virology dismissed rumors that the virus may have been artificially synthesized at one of its laboratories or perhaps escaped from such a facility.
Pompeo, in a Fox News Channel interview after Trump’s news conference, said “we know this virus originated in Wuhan, China,” and that the Institute of Virology is only a handful of miles away from the wet market.
“We really need the Chinese government to open up” and help explain “exactly how this virus spread,” said Pompeo.
“The Chinese government needs to come clean,” he said.
The broad scientific consensus holds that SARS-CoV-2, the virus’ official name, originated in bats.
Trump and other officials have expressed deep skepticism of China’s officially declared death toll from the virus of around 3,000 people, when the United States has a death toll of more than 20,000 and rising.
He returned to the subject on Wednesday, saying the United States has more cases “because we do more reporting.”
“Do you really believe those numbers in this vast country called China, and that they have a certain number of cases and a certain number of deaths; does anybody really believe that?” he said.
GENEVA (Reuters) – World Health Organization officials on Wednesday denied that the body was “China-centric” and said that the acute phase of a pandemic was not the time to cut funding, after U.S. President Donald Trump said he may put contributions on hold.
The United States is the top donor to the Geneva-based body which Trump said had issued bad advice during the new coronavirus outbreak.
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U.S. contributions to WHO in 2019 exceeded $400 million, almost double the 2nd largest country donor, according to figures from the U.S. State Department. China contributed $44 million, it said.
“We are still in the acute phase of a pandemic so now is not the time to cut back on funding,” Dr Hans Kluge, WHO regional director for Europe, told a virtual briefing when asked about Trump’s remarks.
Trump told a news conference on Tuesday that the United States was “going to put a hold on money spent to the WHO,” however, he appeared to backtrack later when in response to questions he said: “We’re going to look at it.”
It was not immediately clear how Trump could “block” funding for the organization. Under U.S. law, Congress, not the president, decides how federal funds are spent.
Dr Bruce Aylward, senior advisor to the WHO Director-General, also defended the U.N. agency’s relationship with China, saying its work with Beijing authorities was important to understand the outbreak which began in Wuhan in December.
“It was absolutely critical in the early part of this outbreak to have full access to everything possible, to get on the ground and work with the Chinese to understand this,” he told reporters.
“This is what we did with every other hard-hit country like Spain and had nothing to do with China specifically.”
Aylward, who led a WHO expert mission to China in February, defended WHO recommendations to keep borders open, saying that China had worked “very hard” to identify and detect early cases and their contacts and ensure they did not travel.
“China worked very, hard very early on, once it understood what it was dealing with, to try and identify and detect all potential cases to make sure that they got tested to trace all the close contacts and make sure they were quarantined so they actually knew where the virus was, where the risk was,” he said.
“Then they made it very clear that these people would not and could not travel within the country, let alone internationally,” he added.
WHO Director-General Tedros Adhanom Ghebreyesus has been lavish in his praise of China from early in the outbreak, praising President Xi Jinping’s “rare leadership”.
David Heymann, a professor at the London School of Hygiene & Tropical Medicine who led WHO’s response to the 2003 SARS outbreak, said that any U.S. funding cut would be a huge blow.
“If the WHO loses its funding it cannot continue to do its work. It works on a shoe-string budget already,” Heymann said in London. “Of course it would be disastrous for the WHO to lose funding.”
Embassy says those flown back must pay for themselves, and praises the US health system, in a departure from the war of words with Washington
More than a million Chinese students remain overseas, but China is on alert against the threat of imported infections
China has drastically cut flights to try to prevent people who arrive from abroad importing the coronavirus. Photo: AFP
Chinese students could be flown home from coronavirus hotspots such as the United States but will have to pay their own expenses, amid efforts by Beijing to persuade some to remain overseas rather than risk bringing the infection with them.
A statement posted on the website of China’s Washington embassy on Monday said that the Chinese government was aware that many school and university students had encountered difficulties in travelling back to China and was taking steps to arrange charter flights for those who needed to return urgently.
With the initial coronavirus outbreak appearing to have been largely contained in mainland China, some Chinese students have travelled home despite soaring air ticket prices and the requirement that those who have been overseas enter quarantine.
Students brought back on charter flights would still need to pay for the ticket and the costs of the mandatory 14-day quarantine upon arrival in China.
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More than 1.6 million Chinese are studying overseas, including about 410,000 in the US. At least 1.42 million Chinese students remained overseas, vice foreign minister Ma Zhaoxu said on Thursday.
Having initially boasted of its success in stopping the virus, Beijing has become notably cautious in recent weeks about welcoming overseas students back home, especially with imported cases continuing to rise.
China’s foreign ministry and its overseas missions have urged students considering travelling home to exercise caution. The embassy in the US issued a notice on Friday speaking highly of the American medical system and its response to the pandemic, in a marked departure from Beijing’s narrative, which has included pinning the blame for the pandemic on the United States.
Friday’s embassy notice also dismissed rumours that Chinese students had been targeted because of the coronavirus during the closures of universities, and pledged help if students had trouble communicating with universities about campus accommodation.
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Ma said that most overseas students had heeded his government’s advice and chosen not to go back to China, but an online survey late last month that was cited by Caixin magazine on Saturday showed nearly 60 per cent of Chinese students in the US wanted to return home.
Most of the 4,000 students polled said they were unable to make the trip because of concerns about contracting the coronavirus during the journey and air fares that had more than doubled recently. Both China and the US have drastically cut back long-haul international flights.
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Students under 18 years of age who want to return to China are required by the embassy to register online.
The initial evacuation plan announced on Monday proposed to prioritise school-age children whose parents were not in the US with them. The proposed arrangement appeared to include students from Hong Kong, Macau and Taiwan.
The philanthropic foundations of Jack Ma and Joe Tsai, two of China’s wealthiest technology entrepreneurs, have donated 23 million face masks, 2,000 ventilators and 170,000 pieces of protective gear to New York
The donation, the biggest by private citizens to the epicentre of the global coronavirus pandemic, was described by New York Governor Andrew Cuomo as ‘really good news’
A shipment of 1,000 ventilators donated by Jack Ma Foundation and Joe Tsai Foundation, has arrived in New York. Photo: Handout
Chinese philanthropists are stepping up their donation of protective gear, essential medical and diagnostic kits to the United States, Europe and Asian countries, despite rising acrimony between diplomats and government officials looking to pin blame amid the world’s worst pandemic in decades.
The private foundations of Jack Ma and Joe Tsai, co-founders of this newspaper’s owner Alibaba Group Holding and two of China’s wealthiest technology entrepreneurs, have donated a combined 23 million face masks, 2,000 medical ventilators and 170,000 pieces of protective gear to New York city.
The first 1,000 medical ventilators arrived today, with another 1,000 on the way, for a total donation valued at US$50 million, according to a person familiar with the matter.
Delivery of the essential materials, made possible by behind-the-scene manoeuvres by the donors and officials from both the Chinese and US sides due to import and export regulatory hurdles, highlights the role of civil diplomacy in dealing with the global public health crisis.
New York Governor Andrew Cuomo thanks the Chinese government for the 1,000 ventilators donated by Jack Ma Foundation and Joe Tsai Foundation, which arrived in New York on Saturday. Photo: Handout
The gesture comes as diplomats of both countries, and even government officials including the US president and his secretary of state, have engaged in a tit-for-tat war of words, as they attempt to pin the blame for the worlds worst pandemic in decades on each other.
Confirmed cases in the US have soared and surpassed China as the new global epicentre. In the US there are nearly 310,000 cases and nearly 8,500 people have died so far from the Covid-19 disease.
Jack Ma is a friend of mine and he’s made it very possible to get about 1,000 ventilators from China. But that was from him and my other friend [Tsai] that was really a gift – Andrew Cuomo, governor of New York
Andrew Cuomo, governor of New York, thanked the Chinese government for easing the transfer of the ventilators to the hard-hit state, the current epicentre of the coronavirus outbreak in the US.
He said the donations were “really good news”, as the state pushes up against the apex of the outbreak, which is likely to hit in about seven days.
“This is a big deal, and this is going to make a significant difference for us,” Governor Andrew Cuomo said on Saturday.
“Jack Ma is a friend of mine and he’s made it very possible to get about 1,000 ventilators from China. But that was from him and my other friend [Tsai] that was really a gift. And we appreciate it very much.”
One of the challenges in making the donation possible was the fact that the US had previously blocked China-made “KN95” standard masks, only allowing “3M N95” masks to be used. Although the two masks have different standards, they essentially have the same performance. On Friday, the US Food and Drugs Administration issued an emergency use authorisation for KN95 masks.
Alfred Wu, associate professor in Lee Kuan Yew School of Public Policy at National University of Singapore, said that what China is doing with its so-called masks diplomacy is very clear. “But given the emergency situation in New York, whatever channel – private or public sources – the equipment comes from, should not matter, especially those for medical workers,” he said.
Separately, the western state of Oregon has also said that it would send 140 ventilators to New York.
The state, like other areas of the US, is facing shortages of medical gear, including masks and ventilators.
“We are not yet at the apex. We are getting closer,” Cuomo said, adding that this was good as it gave the authorities more time to prepare.
A tweet from New York Governor Andrew Cuomo thanking the Chinese government for the 1,000 ventilators donated by Jack Ma Foundation and Joe Tsai Foundation. Photo: Twitter
Cuomo said 113,704 people in New York have tested positive for the coronavirus, with 15,000 having been hospitalised The state’s death toll saw a significant spike on Saturday to reach 3,565, up from 2,935 the previous day.
The White House has been criticised for not better coordinating the supply of medical goods to states, who are competing with each other on the open market.
NUS’ Wu said that tussle between the federal and state governments in the US on key decisions on acquiring medical supplies was not helping the fight against the pandemic. “Unlike in China, where the central government has the say over local governments, in the US, when it comes to public health provision, the power belongs to the state,” he said.
Meanwhile, Cuomo acknowledged that he asked the White House and others for help negotiating the ventilators.
Trump said he would like to hear a more resounding “thank you” from Cuomo for providing medical supplies and helping quickly to add hospital capacity.
NEW YORK (Reuters) – The number of U.S. coronavirus infections climbed above 82,000 on Thursday, surpassing the national tallies of China and Italy, as New York, New Orleans and other hot spots faced a surge in hospitalizations and looming shortages of supplies, staff and sick beds.
With medical facilities running low on ventilators and protective masks and hampered by limited diagnostic testing capacity, the U.S. death toll from COVID-19, the respiratory disease caused by the virus, rose beyond 1,200.
“Any scenario that is realistic will overwhelm the capacity of the healthcare system,” New York Governor Andrew Cuomo told a news conference. He described the state’s projected shortfall in ventilators – machines that support the respiration of people have cannot breathe on their own – as “astronomical.”
“It’s not like they have them sitting in the warehouse,” Cuomo added. “There is no stockpile available.”
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At least one New York City hospital, New York-Presbyterian/Columbia University Medical Center in Manhattan, has begun a trial of sharing single ventilators between two patients.
While New York was the coronavirus epicenter in the United States this week, the next big wave of infections appeared headed for Louisiana, where demand for ventilators has already doubled. In New Orleans, the state’s biggest city, Mardi Gras celebrations late last month are believed to have fueled the outbreak.
Louisiana Governor John Bel Edwards said New Orleans would be out of ventilators by April 2 and potentially out of bed space by April 7 “if we don’t flatten the infection curve soon.”
“It’s not conjecture, it’s not some flimsy theory,” Edwards told a press conference. “This is what is going to happen.”
About 80% of Louisiana’s intensive care patients are now on breathing machines, up from the normal rate of 30-40%, said Warner Thomas, chief executive of Ochsner Health System, the state’s hospital group.
Scarcities of protective masks, gloves, gowns and eyewear for doctors and nurses – reports abound of healthcare workers recycling old face masks, making their own or even using trash bags to shield themselves – have emerged as a national problem.
“Our nurses across the country do not have the personal protective equipment that is necessary to care for COVID patients, or any of their patients,” Bonnie Castillo, head of the largest U.S. nurses union, National Nurses United, told MSNBC.
In an ominous milestone for the United States as a whole, at least 82,153 people nationwide were infected as of Thursday, according to a Reuters tally from state and local public health agencies. China, where the global pandemic emerged late last year, had the second highest number of cases, 81,285, followed by Italy with 80,539.
At least 1,204 Americans have died from COVID-19, which has proven especially dangerous to the elderly and people with underlying chronic health conditions, Reuters’ tally showed.
MORE BEDS NEEDED
For New York state, Cuomo said a key goal was rapidly to expand the number of available hospital beds from 53,000 to 140,000.
New York hospitals were racing to comply with Cuomo’s directive to increase capacity by at least 50%. At Mount Sinai Hospital’s Upper East Side location, rooms were being constructed within an atrium to open up more space for beds.
At Elmhurst Hospital in New York’s borough of Queens, about a hundred people, many wearing masks with their hoods pulled up, lined up behind barriers outside the emergency room entrance, waiting to enter a tent to be screened for the coronavirus.
The city coroner’s office has posted refrigerated trucks outside Elmhurst and Bellevue Hospital to temporarily store bodies of the deceased.
Deborah White, vice chair of emergency medicine at Jack D. Weiler Hospital in the city’s Bronx borough, said 80% of its emergency room visits were patients with coronavirus-like symptoms.
A ventilator shortfall and surge in hospitalizations has already raised the prospect of rationing healthcare.
Asked about guidelines being drafted on how to allocate ventilators to patients in case of a shortage, New Jersey Governor Phil Murphy told reporters such bioethical discussions “haunted him” but were unavoidable.
Outside New York and New Orleans, other hot spots appeared to be emerging around the country, including Detroit.
Brandon Allen, 48, was buying groceries in Detroit for his 72-year-old mother, who has tested positive and was self-quarantining at home.
“It’s surreal,” Allen said. “People around me I know are dying. I know of a couple people who have died. I know a couple of people who are fighting for their lives. Everyday you hear of another person who has it.”
RECORD UNEMPLOYMENT CLAIMS
Desperate to slow virus transmissions by limiting physical contact among people, state and local governments have issued stay-at-home orders covering about half the U.S. population. A major side effect has been the strangulation of the economy, and a wave of layoffs.
The U.S. Labor Department reported Thursday the number of Americans filing claims for unemployment benefits last week soared to a record of nearly 3.28 million – almost five times the previous weekly peak of 695,000 during the 1982 recession.
Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases, said warmer weather may help tamp down the U.S. outbreak as summer approaches, though the virus could re-emerge in the winter.
“We hope we get a respite as we get into April, May and June,” Fauci said on WNYC public radio.
Washington state Governor Jay Inslee said he may extend a stay-at-home order tentatively set to expire April 6, encouraged by what he called a “very modest improvement” in the Seattle area.
Washington experienced the first major U.S. outbreak of COVID-19 and has been among the hardest-hit states. As of Thursday the state reported about 3,200 cases and 147 deaths.
In California’s Coachella Valley, a region rife with retirees who are especially vulnerable, 25 members of the state’s National Guard helped a non-profit distribute food to people stuck in their homes, as most of the regular volunteers are senior citizens.
More than 10,000 troops have been deployed in 50 states to provide humanitarian aid during the pandemic.
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
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.”
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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 SichuanDaily said 258 of the company’s engineers spent three days fast-tracking development of an assembly line with more than 1,200 components.
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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.
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.
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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.”
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