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.
Pou Chen makes footwear for the likes of Nike and Adidas, but says it has suffered from a lack of orders as global value chains strain under the impact from the virus
Chinese workers moved to Vietnam to help set-up new factories as the company expand its production, but have now become expendable
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We believe we contributed greatly to the firm’s relocation process, copying the production line management experience and successful model of China’s factories to Vietnamese factories,” said Dave Zhang, who started working for Pou Chen in Vietnam in 2003.
“Now, when the factories over there have matured, and there is a higher automation level in production, our value has faded in the management’s eyes and we got laid off, in the name of the automation level.”
Rush hour chaos returns to Vietnam’s streets as coronavirus lockdown lifted
The group claims the firm began to fire Chinese employees several years ago, with the total number dropping from over 1,000 at its peak to around 400 last year.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
In a further statement to the South China Morning Post, Pou Chen stood by the move as the coronavirus pandemic had reduced demand for footwear products and so required an “adjustment of manpower.”
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Last month, the company was also mulling pay cuts and furloughs that would affect 3,000 employees in Taiwan and officials based in its overseas factories, according to the Taipei Times.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
“I worked at the Dongguan branch of Pou Chen for 11 years from 1995.” Zeng added “In the 1990s and early 2000s, the company expanded rapidly in Dongguan with a growing number of large orders, and every worker had to work hard around the clock. I remember I earned 300 yuan (US$42) a month in 1995, and my monthly salary rose to 1,000 yuan (US$141) in 1998.”
Zeng’s salary eventually rose to over 3,000 yuan in 2005 as China’s economy boomed, leading Pou Chen to seek alternative production sites in Vietnam and Indonesia where labour and land were even cheaper. However, in the early 2000s, the new locations lacked skilled shoe manufacturing workers like Zeng.
“The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world and the offer of US$700 per month was not bad.” Zeng said.
“We actively cooperated with their plans. Over the past decade, we have been away from our families and hometowns, and followed the company’s strategy to work hard in Vietnam.
With no deaths and cases limited to the hundreds, Vietnam’s Covid-19 response appears to be working
“In 2005, the company sent me to its newly-built factory in Vietnam. This year was my 14th year in Dong Nai in Vietnam. I have witnessed the company’s production capacity in Vietnam become larger and larger. When I arrived, there were only a few production lines, and now there are at least dozens of them, employing more than 10,000 workers in each factory.”
According to a report in the Taipei Times on April 14, citing both Reuters and Bloomberg, Pou Chen was ordered to temporarily shut down one of its units in Vietnam over coronavirus concerns, according to Vietnamese state media.
The company was forced to suspend production for two days after failing to meet local rules on social distancing, Tuoi Tre newspaper reported.
“We Chinese employees actually were pathfinders for the company’s relocation from China to Vietnam,” said Zhang, who was in charge of a 1,700-worker factory producing 1.7 million shoe soles per month.
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
“We were sent to resolve any ‘bottlenecks’ in the production lines that were slowing down the rest of the plant, because during the launch of every new production line, Vietnamese workers would strike and get into disputes. As far as I know, there were over a thousand Chinese employees managing various aspects of the production lines in the company’s Vietnamese factories.
“In fact, what our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult. That is to teach Vietnamese workers our experience of working on a production line, improve the productivity of the Vietnamese workers, and help the factories become localised.”
Overall, Pou Chen says it produces more than 300 million pairs of shoes per year, accounting for around 20 per cent of the combined wholesale value of the global branded athletic and casual footwear market.
“Because of cultural shock and great pressure to expedite orders, Vietnamese workers were not used to the management style of Taiwan factories,” Zhang added.
“Many of our Chinese employees were beaten by Vietnamese workers [due to cultural differences about work]. During anti-China protests in Vietnam, we were still under great pressure to keep the local production lines operating.”
But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature
and a dip in trade with partner countries that could take a year to overcome, analysts say.
But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.
Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.
His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.
“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.
“The second quarter will really depend on how the epidemic is contained in belt and road countries.”
Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.
“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.
“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.
“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”
Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.
China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.
Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.
Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.
“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.
“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”
Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Move to create administrative units for disputed Paracel and Spratly Islands angers Hanoi
China has been engaged in a series of stand-offs with rival claimants recently
An aerial view of Sanha, a city created to assert China’s claims over the disputed waters. Photo: AFP
China’s latest activities in the South China Sea have triggered a strong protest from rival claimant Vietnam, which said the move “seriously violated” its sovereignty.
The complaint came after China announced on Sunday that it had set up two new administrative districts on the Paracel and Spratly Islands.
The two districts – which China referred to as Xisha and Nansha – will be under the control of Sansha, a city the Chinese government created in 2012 to assert its claims over the South China Sea.
Vietnam’s foreign ministry spokesperson Le Thi Thu Hang issued a statement of protest on Sunday, and said the move would further complicate the situation in the South China Sea.
“These acts are not conducive to the development of the friendly relations between countries and further complicate the situation in the East Sea [Vietnam’s name for the South China Sea], the region and the world,” she said.
“Vietnam demands that China respect Vietnam’s sovereignty and annul its wrongful decisions and not repeat similar activities in the future.”
Under the new plan, the new district of Xisha will be in charge of Paracel Islands, which are also claimed by Vietnam and Taiwan. The Nansha district will manage the Spratly Islands, where there are also multiple competing claims.
Beijing marks out claims in South China Sea by naming geographical features
21 Apr 2020
Chinese Foreign Ministry spokesman Geng Shuang said on Monday that the establishment of the new districts was in line with China’s normal administrative rules.
“China has been resolutely opposing Vietnam’s words and deeds that undermine China’s sovereignty and rights and interests in the South China Sea, and will continue to take necessary measures to firmly safeguard China’s sovereignty and rights and interests.” he said in a press conference
Vietnam is the only claimant which has publicly protested about the move so far. But Zhang Mingliang, an specialist in Southeast Asian politics with Jinan University, said it was likely to have alarmed other members of the Association of Southeast Asian Nations (Asean).
More footage emerges from 2018 near collision of US and China warships in South China Sea
“Setting up such districts will not have much use or actual benefit, and it will cause opposition among the Asean states, many of which have long been suspicious of China’s intentions over the South China Sea,” said Zhang.
“The coronavirus outbreak has already caused some grievances among them towards China, even though they have not been as vocal as the Western countries,” he said.
Richard Heydarian, an academic and former Philippine government adviser, described the move as China taking advantage of a “strategic vacuum” created by the Covid-19 crisis.
South China Sea: Chinese ship Haiyang Dizhi 8 seen near Malaysian waters, security sources say
18 Apr 2020
“On the one hand it’s engaging in face mask diplomacy [providing medical supplies to other countries] … but on the other hand it’s on the offensive,” he said.
“All of them should be seen as part of one package in which China seizes the strategic opportunity of not only its neighbouring countries scrambling to deal with the coronavirus outbreak, but also the US Navy’s suspension of overseas appointments.”
China has recently become involved in a series of stand-off with other claimants in the contested waters.
A Chinese government survey ship reportedly tagged an exploration vessel operated by Malaysia’s state oil company Petronas in the area, and remained off the Malaysian coastline as of late Sunday.
Earlier this month, Vietnam lodged an official protest with China after a Vietnamese fishing boat sunk after a collision in the Paracel Islands.
Faced with a backlash from the West over its handling of the early stages of the pandemic, Beijing has been quietly gaining ground in Asia
Teams of experts and donations of medical supplies have been largely welcomed by China’s neighbours
Despite facing some criticism from the West, China’s Asian neighbours have welcomed its medical expertise and vital supplies. Photo: Xinhua
While China’s campaign to mend its international image in the wake of its handling of the coronavirus health crisis has been met with scepticism and even a backlash from the US and its Western allies, Beijing has been quietly gaining ground in Asia.
Teams of experts have been sent to Cambodia, the Philippines, Myanmar, Pakistan and soon to Malaysia, to share their knowledge from the pandemic’s ground zero in central China.
China has also held a series of online “special meetings” with its Asian neighbours, most recently on Tuesday when Premier Li Keqiang discussed his country’s experiences in combating the disease and rebooting a stalled economy with the leaders of the Association of Southeast Asian Nations (Asean), Japan and South Korea.
Chinese Prime Minister Li Keqiang speaks to Asean Plus Three leaders during a virtual summit on Tuesday. Photo: AP
Many Western politicians have publicly questioned Beijing’s role and its subsequent handling of the crisis but Asian leaders – including Philippine President Rodrigo Duterte and Japanese Prime Minister Shinzo Abe – have been reluctant to blame the Chinese government, while also facing criticism at home for not closing their borders with China soon enough to prevent the spread of the virus.
An official from one Asian country said attention had shifted from the early stages of the outbreak – when disgruntled voices among the public were at their loudest – as people watched the virus continue its deadly spread through their homes and across the world.
“Now everybody just wants to get past the quarantine,” he said. “China has been very helpful to us. It’s also closer to us so it’s easier to get shipments from them. The [medical] supplies keep coming, which is what we need right now.”
The official said also that while the teams of experts sent by Beijing were mainly there to observe and offer advice, the gesture was still appreciated.
Another Asian official said the tardy response by Western governments in handling the outbreak had given China an advantage, despite its initial lack of transparency over the outbreak.
“The West is not doing a better job on this,” he said, adding that his government had taken cues from Beijing on the use of propaganda in shaping public opinion and boosting patriotic sentiment in a time of crisis.
“Because it happened in China first, it has given us time to observe what works in China and adopt [these measures] for our country,” the official said.
Experts in the region said that Beijing’s intensifying campaign of “mask diplomacy” to reverse the damage to its reputation had met with less resistance in Asia.
Why China’s ‘mask diplomacy’ is raising concern in the West
29 Mar 2020
“Over the past two months or so, China, after getting the Covid-19 outbreak under control, has been using a very concerted effort to reshape the narrative, to pre-empt the narrative that China is liable for this global pandemic, that China has to compensate other countries,” said Richard Heydarian, a Manila-based academic and former policy adviser to the Philippine government.
“It doesn’t help that the US is in lockdown with its domestic crisis and that we have someone like President Trump who is more interested in playing the blame game rather than acting like a global leader,” he said.
Shahriman Lockman, a senior analyst with the foreign policy and security studies programme at Malaysia’s Institute of Strategic and International Studies, said that as the US had withdrawn into its own affairs as it struggled to contain the pandemic, China had found Southeast Asia a fertile ground for cultivating an image of itself as a provider.
China’s first-quarter GDP shrinks for the first time since 1976 as coronavirus cripples economy
Beijing’s highly publicised delegations tasking medical equipment and supplies had burnished that reputation, he said, adding that the Chinese government had also “quite successfully shaped general Southeast Asian perceptions of its handling of the pandemic, despite growing evidence that it could have acted more swiftly at the early stages of the outbreak in Wuhan”.
“Its capacity and will to build hospitals from scratch and put hundreds of millions of people on lockdown are being compared to the more indecisive and chaotic responses seen in the West, especially in Britain and the United States,” he said.
Coronavirus droplets may travel further than personal distancing guidelines
16 Apr 2020
Lockman said Southeast Asian countries had also been careful to avoid getting caught in the middle of the deteriorating relationship between Beijing and Washington as the two powers pointed fingers at each other over the origins of the new coronavirus.
“The squabble between China and the United States about the pandemic is precisely what Asean governments would go to great lengths to avoid because it is seen as an expression of Sino-US rivalry,” he said.
“Furthermore, the immense Chinese market is seen as providing an irreplaceable route towards Southeast Asia’s post-pandemic economic recovery.”
Aaron Connelly, a research fellow in Southeast Asian political change and foreign policy with the International Institute for Strategic Studies in Singapore, said Asian countries’ dependence on China had made them slow to blame China for the pandemic.
“Anecdotally, it seems to me that most Southeast Asian political and business elites have given Beijing a pass on the initial cover-up of Covid-19, and high marks for the domestic lockdown that followed,” he said.
“This may be motivated reasoning, because these elites are so dependent on Chinese trade and investment, and see little benefit in criticising China.”
China and Vietnam ‘likely to clash again’ as they build maritime militias
12 Apr 2020
The cooperation with its neighbours as they grapple with the coronavirus had not slowed China’s military and research activities in the disputed areas of the South China Sea – a point of contention that would continue to cloud relations in the region, experts said.
Earlier this month an encounter in the South China Sea with a Chinese coastguard vessel led to the sinking of a fishing boat from Vietnam, which this year assumed chairmanship of Asean.
And in a move that could spark fresh regional concerns, shipping data on Thursday showed a controversial Chinese government survey ship, the Haiyang Dizhi 8, had moved closer to Malaysia’s exclusive economic zone.
The survey ship was embroiled in a months-long stand-off last year with Vietnamese vessels within Hanoi’s exclusive economic zone and was spotted again on Tuesday 158km (98 miles) off the Vietnamese coast.
Vietnamese vessels last year spent months shadowing the Chinese Haiyang Dizhi 8 survey vessel in resource-rich waters that are a potential global flashpoint as the
China and Vietnam ‘likely to clash again’ as they build maritime militias
12 Apr 2020
On Tuesday, the ship, which is used for offshore seismic surveys, appeared again 158km off Vietnam’s coast, within its exclusive economic zone (EEZ), flanked by at least one Chinese coastguard vessel, according to data from Marine Traffic, a website that tracks shipping.
At least three Vietnamese vessels were moving with the Chinese ship, according to data issued by the Marine Traffic site.
South China Sea News@SCS_news
·
Haiyang Dizhi 8 is heading toward #SouthChinaSea with several escort ships.
South China Sea News@SCS_news
About 50 nm ahead of Haiyang Dizhi 8 is a group of at least 3 #China Coast Guard ships, including the largest 5901. #SouthChinaSea
The presence of the Haiyang Dizhi 8 in Vietnam’s EEZ comes towards the scheduled end of a 15-day nationwide lockdown in Vietnam aimed at curbing the spread of the coronavirus.
“We call on the PRC to remain focused on supporting international efforts to combat the global pandemic, and to stop exploiting the distraction or vulnerability of other states to expand its unlawful claims in the South China Sea,” the US State Department said in a statement, referring to China.
Vietnam pulls DreamWorks’ ‘Abominable’ over South China Sea map
, which also has disputed claims in the South China Sea, has raised its concerns too.
On Saturday, the Global Times, published by the official People’s Daily newspaper of China’s ruling Communist Party, said Vietnam had used the fishing boat incident to distract from its “ineptitude” in handling the coronavirus.
Vietnam’s Ministry of Foreign Affairs did not immediately respond to a request for comment.
Helped by a mass quarantine and aggressive contact-tracing, Vietnam has recorded 265 cases of the novel coronavirus and no deaths. Nearly 122,000 coronavirus tests have been carried out in Vietnam.
China and Vietnam have for years been at loggerheads over the potentially energy-rich waters, called the East Sea by Vietnam.
China’s U-shaped “nine-dash line” on its maps marks a vast expanse of the waters that it claims, including large parts of Vietnam’s continental shelf where it has awarded oil concessions.
and Brunei claim some of the waters that China claims to the south.
During the stand-off last year, at least one Chinese coastguard vessel spent weeks in waters close to an oil rig in a Vietnamese oil block, operated by Russia’s Rosneft, while the Haihyang Dizhi 8 conducted suspected oil exploration surveys in large expanses of Vietnam’s EEZ.
“The deployment of the vessel is Beijing’s move to once again baselessly assert its sovereignty in the South China Sea,” said Ha Hoang Hop, at the Singapore-based ISEAS-Yusof Ishak Institute.
“China is using the coronavirus distraction to increase its assertiveness in the South China Sea, at a time when the US and Europe are struggling to cope with the new coronavirus.”
Authorities in Yunnan limit land and river ports to cargo traffic, locking down border communities
Province on alert for imported cases of Covid-19
Yunnan is on alert for imported cases of the coronavirus. Photo: Xinhua
The southwestern province of Yunnan has banned Chinese citizens from leaving the country via its more than 30 land and river ports to stop the spread of the coronavirus epidemic through returning nationals.
Yunnan, which borders Vietnam, Laos and Myanmar, had restricted its 19 land ports and 14 river ports to cargo, the provincial government said on Tuesday.
The authorities said that from Tuesday night, all departures by Chinese citizens via the checkpoints would be suspended, with exemptions granted for approved foreign aid, technical support or emergency medical workers.
on Saturday. But non-Chinese residents of border areas who have permits to cross into Yunnan could still enter the province, according to a previous report by China News Service.
Those permit holders can still cross into Yunnan but will be discouraged from doing so. Under the new restrictions, they will need to test negative for two nucleic acid tests and one antibody test before being put in seven days of centralised isolation and another seven days of home isolation, all at their own expense.
Coronavirus: Decoding Covid-19
Residents in border cities and counties will be restricted to the village and community level to prevent entry and exit of outsiders. They would also be encouraged to report illegal immigrants, the government said.
Yunnan, which recorded 174 local coronavirus cases including two deaths, said all patients in its initial wave were discharged by March 14. The province is now on alert for imported cases, with eight patients who travelled to the province from overseas being treated as of Tuesday.
Xiao Xian, a professor of international relations from Yunnan University, said some permit holders could be deterred from crossing into Yunnan by the cost of tests and quarantine.
Xiao also said that banning Chinese citizens from crossing the border would affect border trade and tourism, but it was necessary to stop transmission of the coronavirus.
“The need to prevent the spread of an infectious disease outweighs trade and tourism. It is understandable since it is the country’s top priority now,” Xiao said.
US death toll passes 3,000 as New York’s hospitals are pushed to breaking point
Italy extends lockdown as cases exceed 100,000; UN Security Council votes by email for first time
The USNS Comfort passes the Statue of Liberty as it enters New York Harbour on Monday. Photo: Reuters
Harsh lockdowns aimed at halting the march of the coronavirus pandemic extended worldwide Monday as the death toll soared toward 37,000 amid new waves of US outbreaks.
The tough measures that have confined some two-fifths of the globe’s population to their homes were broadened. Moscow and Lagos joined the roll call of cities around the globe with eerily empty streets, while Virginia and Maryland became the latest US states to announce emergency stay-at-home orders, followed quickly by the capital city Washington.
In a symbol of the scale of the challenge facing humanity, a US military medical ship sailed into New York to relieve the pressure on overwhelmed hospitals bracing for the peak of the pandemic.
France reported its highest daily number of deaths since the outbreak began, saying 418 more people had succumbed in hospital.
Spain, which announced another 812 virus deaths in 24 hours, joined the United States and Italy in surpassing the number of cases in China, where the disease was first detected in December.
On Tuesday, mainland China reported a rise in new confirmed coronavirus cases, reversing four days of declines, due to an uptick in infections involving travellers arriving from overseas.
Mainland China had 48 new cases on Monday, the National Health Commission said, up from 31 new infections a day earlier.
All of the 48 cases were imported, bringing the total number of imported cases in China to 771 as of Monday.
There was no reported new case of local infection on Monday, according to the National Health Commission. The total number of infections reported in mainland China stood at 81,518 and the death toll at 3,305. Globally, more than 760,000 have been infected, according to official figures.
Here are the developments:
Hospital ship arrives in New York
New York’s governor issued an urgent appeal for medical volunteers Monday amid a “staggering” number of deaths from the coronavirus, saying: “Please come help us in New York, now.”
The plea from Governor Andrew Cuomo came as the death toll in New York State climbed past 1,200 – with most of the victims in the big city – and authorities warned that the crisis pushing New York’s hospitals to the breaking point is just a preview of what other cities across the US could soon face.
Cuomo said the city needs 1 million additional health care workers.
“We’ve lost over 1,000 New Yorkers,” he said. “To me, we’re beyond staggering already. We’ve reached staggering.”
The governor’s plea came as a 1,000-bed US Navy hospital ship docked in Manhattan on Monday and a field hospital was going up in Central Park for coronavirus patients.
New York City reported 914 deaths from the virus as of 4:30pm local time Monday, a 16 per cent increase from an update six hours earlier. The city, the epicentre of the US outbreak, has 38,087 confirmed cases, up by more than 1,800 from earlier in the day.
Coronavirus field hospital set up in New York’s Central Park as city’s health crisis deepens
Gloom for 24 million people in Asia
The economic fallout from the coronavirus pandemic will prevent almost 24 million people from escaping poverty in East Asia and the Pacific this year, according to the World Bank.
In a report released on Monday, the Washington-based lender also warned of “substantially higher risk” among households that depend on industries particularly vulnerable to the impact of Covid-19. These include tourism in Thailand and the Pacific islands; manufacturing in Vietnam and Cambodia; and among people dependent on “informal labour” in all countries.
The World Bank urged the region to invest in expanding conventional health care and medical equipment factories, as well as taking innovative measures like converting ordinary hospital beds for ICU use and rapidly trining people to work in basic care.
Billionaire blasted for his Instagram-perfect isolation on luxury yacht
31 Mar 2020
Indonesia bans entry of foreigners
Indonesia barred foreign nationals from entering the country as the world’s fourth-most populous country stepped up efforts to contain the spread of the coronavirus pandemic.
The travel ban, to be effective soon, will also cover foreigners transiting through the country, Foreign Minister Retno Marsudi said after a cabinet meeting in Jakarta Tuesday. The curbs will not apply to holders of work permits, diplomats and other official visitors, she said.
The curbs on foreign citizens is the latest in a raft of measures taken by Indonesia to combat the deadly virus that’s sickened more than 1,400 people and killed 122. President Joko Widodo’s administration previously banned flights to and from mainland China and some of the virus-hit regions in Italy, South Korea and Iran. The president on Monday ordered stricter implementation of social distancing and health quarantine amid calls for a lockdown to contain the pandemic.
Indonesia has highest coronavirus mortality rate in Southeast Asia
First US service member dies
The first US military service member has died from the coronavirus, the Pentagon said on Monday, as it reported another sharp hike in the number of infected troops.
The Pentagon said it was a New Jersey Army National Guardsman who had tested positive for Covid-19 and had been hospitalised since March 21. He died on Saturday, it said.
Earlier on Monday, the Pentagon said that 568 troops had tested positive for the coronavirus, up from 280 on Thursday. More than 450 Defence Department civilians, contractors and dependents have also tested positive, it said.
US military has decided to stop providing more granular data about coronavirus infections within its ranks, citing concern that the information might be used by adversaries as the virus spreads.
The new policy, which the Pentagon detailed in a statement on Monday, appears to underscore US military concerns about the potential trajectory of the virus over the coming months – both at home and abroad.
School to resume in South Korea … online
South Korean children will start the new school year on April 9 with only online classes, after repeated delays due to the outbreak of the new coronavirus, the government said Tuesday.
Prime Minister Chung Sye Kyun said that despite the nation’s utmost efforts to contain the virus and lower the risk of infection, there is consensus among teachers and others that it is too early to let children go back to school.
The nation’s elementary schools, and junior and senior high schools were supposed to start the new academic year in early March, but the government has repeatedly postponed it to keep the virus from spreading among children.
The start was last postponed until April 6, but has now been delayed three more days to allow preparations to be made for online classes.
The nation now has 9,786 confirmed cases in total, with 162 deaths.
Italy extends lockdown as cases exceed 100,000
Italy’s government on Monday said it would extend its nationwide lockdown measures
against a coronavirus outbreak, due to end on Friday, at least until the Easter season in April.
The Health Ministry did not give a date for the new end of the lockdown, but said it would be in a law the government would propose. Easter Sunday is April 12 this year. Italy is predominantly Roman Catholic and contains the Vatican, the heart of the church.
Italians have been under lockdown for three weeks, with most shops, bars and restaurants shut and people forbidden from leaving their homes for all but non-essential needs.
Italy, which is the world’s hardest hit country in terms of number of deaths and accounts for more than a third of all global fatalities, saw its total death tally rise to 11,591 since the outbreak emerged in northern regions on February 21.
The death toll has risen by 812 in the last 24 hours, the Civil Protection Agency said, reversing two days of declines, although the number of new cases rose by just 4,050, the lowest increase since March 17, reaching a total of 101,739.
Deadliest day in Italy and Spain shows worst not over yet
28 Mar 2020
Women stand near the body of a man who died on the sidewalk in Guayaquil, Ecuador. Photo: Reuters
Ecuador struggles to collect the dead
Ecuadorean authorities said they would improve the collection of corpses, as delays related to the rapid spread of the new coronavirus has left families keeping their loved ones’ bodies in their homes for days in some cases.
Residents of Guayaquil, Ecuador’s largest city, have complained they have no way to dispose of relatives’ remains due to strict quarantine and curfew measures designed to prevent spread of the disease. Last week, authorities said they had removed 100 corpses from homes in Guayaquil.
But delays in collecting bodies in the Andean country, which has reported 1,966 cases of the virus and 62 deaths, were evident midday on Monday in downtown Guayaquil, where a man’s dead body lay on a sidewalk under a blue plastic sheet. Police said the man had collapsed while waiting in line to enter a store. Hours later, the body had been removed.
More than 70 per cent of the country’s coronavirus cases, which is among the highest tallies in Latin America, are in the southern province of Guayas, where Guayaquil is located.
Panama to restrict movement by gender
The government of Panama announced strict quarantine measures that separate citizens by gender in an effort to slow the spread of the novel coronavirus.
From Wednesday, men and women will only be able to leave their homes for two hours at a time, and on different days. Until now, quarantine regulations were not based on gender.
Men will be able to go to the supermarket or the pharmacy on Tuesdays, Thursdays and Saturdays, and women will be allowed out on Mondays, Wednesdays and Fridays.
No one will be allowed to go out on Sundays. The new measures will last for 15 days.
Police in Kenya use tear gas to enforce coronavirus curfew
Remote vote first for UN Security Council
The UN Security Council on Monday for the first time approved resolutions remotely after painstaking negotiations among diplomats who are teleworking due to the coronavirus pandemic.
The Security Council unanimously voted by email for four resolutions, including one that extended through April 2021 the expiring mandate of UN experts who are monitoring sanctions on North Korea, diplomats said.
The UN mission in Somalia was also prolonged, until the end of June, and the mission in Darfur until the end of May – two short periods decided due to uncertainty over the spread of the pandemic.
The Council also endorsed a fourth resolution aimed at improving the protection for peacekeepers.
The resolutions are the first approved by the Security Council since it began teleworking on March 12 and comes as Covid-19 rapidly spreads in New York, which has become the epicenter of the disease in the United States.
Congo ex-president dies in France
Former Republic of Congo president Jacques Joaquim Yhombi Opango died in France on Monday of the new coronavirus, his family said. He was 81.
Yhombi Opango, who led Congo-Brazzaville from 1977 until he was toppled in 1979, died at a Paris hospital of Covid-19, his son Jean-Jacques said. He had been ill before he contracted the virus.
Yhombi Opango was an army officer who rose to power after the assassination of president Marien Ngouabi.
Yhombi Opango was ousted by long-time ruler Denis Sassou Nguesso. Accused of taking part in a coup plot against Sassou Nguesso, Yhombi Opango was jailed from 1987 to 1990. He was released a few months before a 1991 national conference that introduced multiparty politics in the central African country.
When civil war broke out in Congo in 1997, Yhombi Opango fled into exile in France. He was finally able to return home in 2007, but then divided his time between France and Congo because of his health problems.
‘When I wake I cry’: France’s nurses face hell on coronavirus front line
31 Mar 2020
EU asks Britain to extend Brexit talks
The European Union expects Britain to seek an extension of its post-Brexit transition period beyond the end of the year, diplomats and officials said on Monday, as negotiations on trade have ground to a halt due to the coronavirus pandemic.
Europe has gone into a deep lockdown in a bid to curb the spread of the disease, with more than 330,000 infections reported on the continent and nearly 21,000 deaths.
In Britain, Prime Minister Boris Johnson and his health minister have both tested positive for the virus and the prime minister’s senior adviser Dominic Cummings – one of the masterminds behind Britain’s departure from the EU earlier this year – was self-isolating with symptoms.
London and the EU have been seeking to agree a new trade pact by the end of the year to kick in from 2021, even though the bloc has long said that such a time frame was extremely short to agree rules on everything from trade to security to fisheries.
The pyramid of Khufu, the largest of the Giza pyramid complex. Photo: Reuters
Great Pyramid in Egypt lights up in solidarity
Egypt’s famed Great Pyramid was emblazoned Monday evening with messages of unity and solidarity with those battling the novel coronavirus the world over.
“Stay safe”, “Stay at home” and “Thank you to those keeping us safe,” flashed in blue and green lights across the towering structure at the Giza plateau, southwest of the capital Cairo.
Egypt has so far registered 656 Covid-19 cases, including 41 deaths. Of the total infected, 150 reportedly recovered.
Egypt has carried out sweeping disinfection operations at archaeological sites, museums and other sites across the country.
In tandem, strict social distancing measures were imposed to reduce the risk of contagion among the country’s 100 million inhabitants.
Tourist and religious sites are shuttered, schools are closed and air traffic halted.
Myanmar braces for ‘big outbreak’ after migrant worker exodus from Thailand
30 Mar 2020
Saudi king to pay for all patients’ treatment
Saudi Arabia will finance treatment for anyone infected with the coronavirus in the country, the health minister said on Monday.
The kingdom has registered eight deaths among 1,453 infections, the highest among the six Gulf Arab states.
Health Minister Tawfiq Al Rabiah said King Salman would cover treatment for citizens and residents diagnosed with the virus, urging people with symptoms to get tested.
“We are all in the same boat,” he told a news conference, adding that Crown Prince Mohammed bin Salman was overseeing containment efforts “night and day”.
Denmark eyes gradual reopening after Easter
Denmark may gradually lift a lockdown after Easter if the numbers of coronavirus cases and deaths remain stable, Prime Minister Mette Frederiksen said on Monday.
The Nordic country, which has reported 77 coronavirus-related deaths, last week extended until after Easter a two-week lockdown to limit physical contact between its citizens that began on March 11.
The number of daily deaths slowed to five on Sunday from eight and 11 on Saturday and Friday respectively. Denmark has reported a total of 2,577 coronavirus infections.
“If we over the next two weeks across Easter keep standing together by staying apart, and if the numbers remain stable for the next two weeks, then the government will begin a gradual, quiet and controlled opening of our society again, at the other side of Easter,” Frederiksen said.
Move will help air force with patrols and combat-readiness near Taiwan and in the East and South China seas, according to observers
Markings including national flag and service insignia will also be standardised under new guidelines
Chinese military aircraft will get “low observable” coatings and standardised markings. Photo: Xinhua
Chinese military aircraft are to be painted with “low observable” coatings and standardised markings under new guidelines, a move observers say will assist with operations near Taiwan and in the East and South China seas.
The guidelines require markings including the national flag and service insignia to be gradually standardised on both active and future warplanes, the official PLA Daily newspaper said earlier this month.
The move comes two years after the Chinese navy started experimenting with its J-16 strike fighter, using a dark grey low-visibility coating instead of blue-grey, and replacing its service insignia with a new design, according to military magazine Ordnance Industry Science Technology.
Some of the navy’s only active aircraft carrier-based fighter jets, the J-15s, have also been given new coatings and markings, according to the People’s Liberation Army’s official website.
PLA Daily said the move aimed to give Chinese warplanes a combat advantage as they “will be less likely to be detected by both the naked eye and military radar”. It said the new guidelines would be gradually implemented this year.
Some of the aircraft carrier-based J-15 fighter jets already have the new coatings. Photo: AFP
Macau-based military observer Antony Wong Dong said the move would help the air force improve patrols and combat-readiness as it carried out more drills near the Taiwan Strait and in the East and South China seas.
China’s air force and navy have sent warplanes including Su-35 fighter jets, H-6K strategic bombers and advanced KJ-2000 airborne early warning aircraft to conduct “encirclement” drills around Taiwan since 2018, as Beijing applies pressure on the self-ruled island that it sees as part of its territory. But none of the aircraft seen in photographs of the exercises had low-visibility coatings or standardised markings, as used on the navy’s J-16s and J-15s.
US spy plane pilots use China’s satellite navigation system as backup
9 Mar 2020
“Aircraft used by the PLA Air Force have different coatings and markings because they are still in a transitional period,” Wong said. “Its counterparts like Taiwan have learned from Western countries like the United States to standardise coatings and markings and designs [since the 1990s].”
Beijing insists that Taiwan, which split from the mainland in 1949, remains part of China and they will eventually be reunited – by force if necessary.
The PLA also regularly sends aircraft to monitor freedom of navigation operations by the US Navy in the South China Sea. Beijing has territorial disputes in the resource-rich waterway with countries including Vietnam, the Philippines, Malaysia and Brunei.
A military insider in Beijing said the US move to send hundreds of its new-generation F-35 stealth fighter jets to South Korea and Japan had also pushed the PLA to upgrade the coatings on its aircraft.
“These coatings are a highly technical area, and China puts a tremendous amount of resources into research on this every year,” said the insider, who requested anonymity due to the sensitivity of the issue. “The coating that’s used on China’s first stealth fighter jet, the J-20, is more advanced than they used on the Lockheed Martin F-22s, but it’s not yet at the level of the F-35s.”
Hong Kong-based military expert Song Zhongping said military aircraft used to have a bright red national flag and service insignia that made them more detectable on radar systems, or even with the naked eye.
“The red they used is striking, but it’s not in line with the ‘low observable’ requirement for all fighter jets,” said Song, who is a military commentator for Phoenix Television.
“All fighter jets must have stealth and low-visibility capabilities, and the coatings and markings on them are part of how they can do this and meet requirements for combat.”
Chinese State Councilor and Foreign Minister Wang Yi meets with Vietnamese Deputy Prime Minister and Minister for Foreign Affairs Pham Binh Minh in Vientiane, Laos, Feb. 19, 2020. (Photo by Kaikeo Saiyasane/Xinhua)
VIENTIANE, Feb. 19 (Xinhua) — Chinese State Councilor and Foreign Minister Wang Yi met here Wednesday with Vietnamese Deputy Prime Minister and Minister for Foreign Affairs Pham Binh Minh, with both sides pledging to further promote bilateral ties and jointly advance Lancang-Mekong cooperation.
Wang is in Vientiane, capital of Laos, for the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease and the fifth Lancang-Mekong Cooperation Foreign Ministers’ Meeting.
During the meeting with Pham Binh Minh, Wang said that under the strong leadership of the Communist Party of China Central Committee with Xi Jinping at the core, the whole party and the whole country are rallying together to counter the COVID-19 epidemic.
Thanks to the arduous efforts, China’s measures to prevent and control the epidemic have been achieving visible progress, he noted.
It is necessary for China and the Association of Southeast Asian Nations (ASEAN), linked by mountains, rivers and waters and sharing weal and woe, to timely share information and work together to tackle the epidemic so as to safeguard people’s health of China and ASEAN countries, Wang said.
Vietnam, as the ASEAN chair, has made active response to China’s proposal to hold the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease, Wang said, noting that it testifies to the fine tradition of their shared spirit of “good neighbor, good friend, good comrade and good partner” as well as supporting and helping each other, he said.
Wang expressed belief that the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease to be held Thursday will achieve success, thus sending out an explicit message that China and ASEAN countries will overcome difficulties with concerted efforts.
This year marks the 70th anniversary of the establishment of the diplomatic relations between China and Vietnam, Wang said, noting that the China-Vietnam comprehensive strategic cooperative partnership has entered into a critical phase of inheriting the past and ushering in the future.
He called on the two sides to carry forward the friendly cause initiated by past generations of leaders of both sides, implement the important consensus reached by leaders of the two countries, maintain high-level strategic communication and advance exchanges and cooperation across the board and at sub-national levels.
He also said that the two countries should properly manage and control differences, steadily promote practical cooperation in various fields and well uphold the common strategic interests of the two socialist countries.
China attaches great importance to the Lancang-Mekong cooperation, Wang said, adding that China stands ready to work together with the Vietnamese side to actively develop greater synergy between the Lancang-Mekong cooperation and the construction of the “new land-sea corridor” so as to give a boost to the economic development of the Mekong River areas.
Pham Binh Minh, for his part, said Vietnam speaks highly of the efforts China has made in the fight against the COVID-19 epidemic, believing that the Chinese government and the Chinese people will tide over the difficulties and win the fight.
Minh told Wang that those in Vietnam affected by the virus have almost recovered.
He said his country is willing to work together with China to ensure that the Special ASEAN-China Foreign Ministers’ Meeting on Coronavirus Disease will be held successfully here on Thursday.
Noting that the development of bilateral relations has maintained good momentum for the time being, Minh hoped that the two sides will boost strategic coordination, jointly hold activities to celebrate the 70th anniversary of the establishment of the diplomatic ties between the two countries and promote the cooperation in all fields so as to make greater achievements.
He said Vietnam is willing to strengthen mutual political trust with China, properly handle maritime issues and encourage the cooperation between localities of the two countries, especially in the border areas.
Minh also said his country is willing to strengthen coordination and cooperation with China within the framework of multilateralism.
Vietnam applauds the achievements made in Lancang-Mekong cooperation and is ready to join hands with China to advance the mechanism, he added.
It started with a cough by a passenger who had visited China, leading to the two-week quarantine of some 3,700 passengers and crew
At least 218 cases have been detected on board the Diamond Princess, which has been described as ill-equipped to prevent the spread of infections
Passengers and crew on the Diamond Princess cruise liner are under quarantine until February 19, 2020. Photo: Reuters
For almost a fortnight and counting, the Diamond Princess has resembled a floating hospital more than a luxury cruise liner, as 3,711 passengers and crew have remained under quarantine in Japan due to an outbreak of the deadly coronavirus on board.
The UK-flagged vessel, which set out on a 29-day voyage from Singapore to Yokohama on January 6, has been in lock-down since arriving at the Japanese city on February 3, after an elderly passenger who disembarked in Hong Kong tested positive for the virus, which causes the respiratory disease officially known as Covid-19.
Along the way, the ship had stopped at 14 ports, including Ho Chi Minh City in
Kobe and Osaka in Japan, and Taipei in Taiwan, with repeat visits to a number of destinations, including Hong Kong.
How did the outbreak start?
While the exact source of the outbreak on the Diamond Princess is yet to be determined, it is suspected to be linked to a 80-year-old man from Hong Kong who had recently made a brief visit to mainland China.
The man boarded the ship on January 20 in Yokohama before disembarking five days later in Hong Kong, where he tested positive for the virus after seeking medical attention for symptoms including a cough.
Coronavirus: 44 more cases on Diamond Princess cruise ship
13 Feb 2020
How many people have tested positive for the coronavirus on board?
Japanese Health Minister Katsunobu Kato announced on Thursday that 44 new cases
of the virus had been detected on the Diamond Princess, including a quarantine officer who tested positive, bringing the total number of infections on board to at least 218.
The hike in infections came after officials announced 40 fresh cases on Wednesday. Authorities have so far tested 713 people on board, fewer than one-fifth of the total, but the outbreak already ranks as the largest single cluster of infections outside mainland
Japan has confirmed 247 cases overall since the virus was first detected in the Chinese city of Wuhan in late December.
Passengers are allowed short visits above deck for fresh air. Photo: Reuters
What has it been like for passengers on board?
Passengers who have not been diagnosed with the coronavirus have been asked to stay in their cabins, except for short visits above deck for fresh air, until the quarantine period ends on February 19.
Those who have tested positive have been evacuated to onshore medical facilities. Health officials announced on Thursday that they intended to move elderly people and those with pre-existing conditions off the ship in the coming days even if they tested negative.
Many of those on board have described the tedium of being confined to their cabins and anxiety about the virus spreading further, or expressed frustration at the lack of timely information about the outbreak coming from Japanese authorities.
“It’s getting tougher by the day, and certainly for passengers with the inside cabins, it’s not easy,” said British passenger David Abel in a Facebook live-stream on Thursday.
The sorry state of Hongkongers stuck aboard quarantined cruise ship in Japan
11 Feb 2020
Some passengers have praised the efforts of the crew to keep up people’s spirits, including putting together videos featuring magic tricks and dance and stretching routines.
Matthew Smith, a passenger from the United States, has racked up thousands of followers on Twitter with his regular upbeat appraisals of the ship’s food.
“Don’t believe the honeymooners who would rather be in an American hospital,” he wrote in one post last week. “You might have to drag me off the ship when the quarantine ends.”
The event on the Diamond Princess cruise would fit the description of a super spreading event. David Hui, infectious diseases expert
Why has Japan’s handling of the outbreak been so controversial?
Some medical experts have questioned the wisdom of placing the passengers and crew in quarantine in the close confines of a ship, rather than removing them to dedicated facilities on the shore.
“Ideally, the crew members and the passengers should be quarantined at holiday camps,” said David Shu-Cheong Hui, the director of the Stanley Ho Centre for Emerging Infections Diseases in Hong Kong. “The event on the Diamond Princess cruise would fit the description of a super spreading event.”
Panic buying, mistrust and economic woes as Japan reels from coronavirus
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Kumar Visvanathan, an infectious diseases expert at the University of Melbourne, said a cruise liner such as the Diamond Princess would be ill-equipped to prevent the spread of infections.
“It seems that though isolation in individual cabins is somewhat effective, the increasing numbers of symptomatic infections seems to suggest active infections even with the best precautions are occurring,” Visvanathan said.
“It is clear that cruise ships and their individual cabins are not made for isolation purposes and depend heavily on individual participation in the isolation procedures, including respiratory hygiene, cough etiquette and hand hygiene,” he said.
Japanese city encourages travellers in coronavirus quarantine after return from China
Visvanathan said, however, that gauging the correct response was difficult as authorities had to consider the welfare of both the general public and those on the ship.
“I think the way to look at it is there are two disparate concerns that need to be balanced,” he said. “The first is the protection of the outside community which I think the Japanese government is taking as most important, and in this case isolation on board is the most efficient way to prevent infection of the Japanese population.”
Criticism has also been levelled at authorities for not testing all of those on board from the start. After initially insisting that they did not have the resources to test everyone on board, health officials said on Thursday that they were now aiming to test 1,000 people a day.
The World Health Organisation, however, has defended Japan’s handling of the situation, saying the country was ensuring those who were ill received proper treatment, the most important consideration during such an outbreak.
CHINDIA ALERT: You'll be living in their world, very soon 
Coronavirus: Chinese workers in Vietnam cry foul after being fired by Taiwanese firm making shoes for Nike, Adidas
A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.
Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to
from their hometowns in China due to the coronavirus lockdowns.
“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.
In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.
The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.
“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.
Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.
Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.
“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.
Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.
The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng
What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang
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