Tag Archives: HUMDIS

U.S. court rejects J&J bankruptcy strategy for thousands of talc lawsuits

Jan 30 (Reuters) – A U.S. appeals court on Monday shot down Johnson & Johnson’s (JNJ.N) attempt to offload tens of thousands of lawsuits over its talc products into bankruptcy court. The ruling marked the first major repudiation of an emerging legal strategy with the potential to upend U.S. corporate liability law.

J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.

The court ruled the healthcare conglomerate improperly placed its subsidiary into bankruptcy even though it faced no financial distress. J&J’s two-step sought to halt more than 38,000 lawsuits from plaintiffs alleging the company’s baby powder and other talc products caused cancer. The appeals court ruling revives those lawsuits.

Reuters last year detailed the secret planning of Texas two-steps by Johnson & Johnson and other major firms in a series of reports exploring corporate attempts to evade lawsuits through bankruptcies.

Monday’s decision by the U.S. 3rd Circuit Court of Appeals in Philadelphia dismissed the bankruptcy filed by the J&J subsidiary in 2021. Before the filing, J&J had faced costs of $3.5 billion in verdicts and settlements.

J&J shares closed down 3.7% – the biggest one-day percentage decline in two years. The company said in a statement that it would challenge the ruling and that its talc products are safe.

Plaintiffs attorneys and some legal experts have argued the two-step could set a dangerous precedent, providing a blueprint for any corporation to easily avoid undesirable litigation. The appeals court decision could force companies considering the strategy to more carefully consider its risks, two legal experts said.

“It is a push back on the notion that any company anywhere can use the same tactic to get rid of their mass tort liability,” said Lindsey Simon, a professor at University of Georgia School of Law.

Bankruptcy filings typically suspend litigation in trial courts, forcing plaintiffs into often time-consuming settlement negotiations while leaving them unable to pursue their cases in the courts where they originally sued.

The 3rd Circuit ruling does not directly impact three other Texas two-step bankruptcies, filed by subsidiaries of Koch Industries-owned Georgia Pacific, global construction giant Saint-Gobain(SGOB.PA), and Trane Technologies (2IS.F). Those cases fall under the jurisdiction of the 4th Circuit appeals court. 3M (MMM.N) attempted a similar maneuver, which is currently pending in the 7th Circuit.

Those companies did not comment on the 3rd Circuit ruling or did not immediately respond to inquiries. All have previously defended the bankruptcies as the best way to fairly compensate claimants. Plaintiffs’ attorneys have countered that the Texas two-step is an improper manipulation of the bankruptcy system. The strategy uses a Texas law to split an existing company in two, creating the new subsidiary meant to shoulder the lawsuits.

New Jersey-based Johnson & Johnson, valued at more than $400 billion, said its subsidiary’s bankruptcy was initiated in good faith. J&J initially pledged $2 billion to the subsidiary to resolve talc claims and entered into an agreement to fund an eventual settlement approved by a bankruptcy judge.

“Resolving this matter as quickly and efficiently as possible is in the best interests of claimants and all stakeholders,” J&J said.

A three-judge panel on the appeals court rejected J&J’s argument, finding the company’s subsidiary, LTL Management, was created solely to file for Chapter 11 protection but had no legitimate need for it. Only a debtor in financial distress can seek bankruptcy, the panel ruled. The judges pointed out that J&J assured that it would give LTL plenty of money to pay talc claimants.

“Good intentions – such as to protect the J&J brand or comprehensively resolve litigation – do not suffice alone,” the judges said in a 56-page opinion. “LTL, at the time of its filing, was highly solvent with access to cash to meet comfortably its liabilities.”

‘PROJECT PLATO’

The decision could force J&J to fight talc lawsuits for years in trial courts. The company has a mixed record fighting the suits so far. While the firm was hit with major judgments in some cases before filing bankruptcy, more than 1,500 talc lawsuits have been dismissed and the majority of cases that have gone to trial have resulted in verdicts favoring J&J, judgments for the company on appeal, or mistrials, according to its subsidiary’s court filings.

A December 2018 Reuters investigation revealed that J&J officials knew for decades about tests showing that the company’s talc sometimes contained traces of carcinogenic asbestos but kept that information from regulators and the public. J&J has said its talc does not contain asbestos and does not cause cancer.

Facing unrelenting litigation, J&J enlisted law firm Jones Day, which had helped other companies execute Texas two-step bankruptcies to address asbestos-related lawsuits.

J&J’s effort, as Reuters reported last year, was internally dubbed “Project Plato,” and employees working on it signed confidentiality agreements. A company lawyer warned them to tell no one, including their spouses, about the plan.

Jones Day did not immediately respond to a request for comment.

The Texas two-step has garnered criticism from Democratic lawmakers in Washington, and inspired proposed legislation that would severely restrict the practice.

Senator Sheldon Whitehouse, a Democrat from Rhode Island, cheered Monday’s appeals court decision. Whitehouse chaired the first congressional hearing scrutinizing two-step bankruptcies in February of last year.

“Bankruptcy is meant to give honest debtors in unfortunate circumstances a fresh start,” he said, not to allow “large, highly profitable corporations” to avoid accountability for wrongdoing with a legal “shell game.”

Reporting by Tom Hals in Wilmington, Delaware; Mike Spector in New York; and Dan Levine in San Francisco; additional reporting by Dietrich Knauth and Chuck Mikolajczak in New York; editing by Bill Berkrot and Brian Thevenot

Our Standards: The Thomson Reuters Trust Principles.

Tom Hals

Thomson Reuters

Award-winning reporter with more than two decades of experience in international news, focusing on high-stakes legal battles over everything from government policy to corporate dealmaking.

Read original article here

Memphis disbands police unit after fatal beating as protesters take to streets

MEMPHIS, Tenn., Jan 28 (Reuters) – The specialized police unit that included the five Memphis officers charged with the fatal beating of Tyre Nichols was disbanded on Saturday as more protests took place in U.S. cities a day after harrowing video of the attack was released.

The police department said in a statement it was permanently deactivating the SCORPION unit after the police chief spoke with members of Nichols’ family, community leaders and other officers. A police spokesperson confirmed all five officers were members of the unit.

Video recordings from police body-worn cameras and a camera mounted on a utility pole showed Nichols, a 29-year-old Black man, repeatedly screaming “Mom!” as officers kicked, punched and struck him with a baton in his mother’s neighborhood after a Jan. 7 traffic stop. He was hospitalized and died of his injuries three days later.

Five officers involved in the beating, all Black, were charged on Thursday with murder, assault, kidnapping and other charges. All have been dismissed from the department.

Nichols’ family and officials expressed outrage and sorrow but urged protesters to remain peaceful. That request was largely heeded on Friday when scattered protests broke out in Memphis – where marchers briefly blocked an interstate highway – and elsewhere.

Cities across the United States saw renewed nonviolent demonstrations on Saturday. In Memphis, protesters chanting, “Whose streets? Our streets!” angrily catcalled a police car that was monitoring the march, with several making obscene gestures. Some cheered loudly when they learned of the disbandment of SCORPION.

Hundreds of protesters gathered in New York’s Washington Square Park before marching through Manhattan, as columns of police officers walked alongside them.

Taken together, the four video clips released Friday showed police pummeling Nichols even though he appeared to pose no threat. The initial traffic stop was for reckless driving, though the police chief has said the cause for the stop has not been substantiated.

The SCORPION unit, short for the Street Crimes Operation to Restore Peace in our Neighborhoods, was formed in October 2021 to concentrate on crime hot spots. Critics say such specialized teams can be prone to abusive tactics.

Friends and family say Nichols was an affable, talented skateboarder who grew up in Sacramento, California, and moved to Memphis before the coronavirus pandemic. The father of a 4-year-old child, Nichols worked at FedEx and had recently enrolled in a photography class.

Nate Spates Jr., 42, was part of a circle of friends, including Nichols, who met up at a Starbucks in the area.

“He liked what he liked, and he marched to the beat of his own drum,” Spates said, remembering that Nichols would go to a park called Shelby Farms to watch the sunset when he wasn’t working a late shift.

Nichols’ death is the latest high-profile instance of police using excessive force against Black people and other minorities. The 2020 murder of George Floyd, a Black man who died after a white Minneapolis officer knelt on his neck for more than nine minutes, galvanized worldwide protests over racial injustice.

Reporting by Maria Cardona in Memphis, Tennessee, and Diane Bartz in Washington; Writing by Joseph Ax; Editing by Cynthia Osterman, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

Diane Bartz

Thomson Reuters

Focused on U.S. antitrust as well as corporate regulation and legislation, with experience involving covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.

Read original article here

U.S. CDC still looking at potential stroke risk from Pfizer bivalent COVID shot

Jan 26 (Reuters) – New data from one U.S. Centers for Disease Control and Prevention (CDC) database shows a possible stroke risk link for older adults who received an updated Pfizer (PFE.N)/BioNTech (22UAy.DE) COVID-19 booster shot, but the signal is weaker than what the agency had flagged earlier in January, health officials said on Thursday.

U.S. Food and Drug Administration officials said they had not detected a link between the shots and strokes in two other safety monitoring databases.

The new data was presented at a meeting of outside experts that advise the FDA on vaccine policy.

Earlier this month, U.S. health officials said they had detected the possible link to ischemic strokes in people over age 65 who received the newer booster shots in its Vaccine Safety Datalink (VSD) database. They said at the time it was very unlikely to represent a true clinical risk.

Dr. Nicola Klein of healthcare company Kaiser Permanente, which maintains VSD data for the CDC, said the rate of strokes observed in the database had slowed in recent weeks, but the signal was still statistically significant, meaning likely not by chance.

Most of the confirmed cases had also received a flu vaccine at the same time, which might be a factor, she said.

FDA scientist Richard Forshee said the agency plans to study whether there is any increased risk of stroke from receiving the two shots at the same time.

Both agencies still recommend older adults receive the booster shots, now tailored to target Omicron variants as well as the original coronavirus.

Dr. Walid Gellad, professor of medicine at University of Pittsburgh, said the issue required further investigation.

“Sometimes signals are not clear,” Gellad said in an email. “It makes sense to look into it more, and it doesn’t make sense to change practice given the known benefits (of getting the booster) in this age group.”

(This story has been corrected to fix the name to Nicola from Nicole in paragraph 5)

Reporting by Michael Erman; Editing by Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Oil settles mixed after hitting 7-week high on strong China outlook

  • Brent, U.S. crude hit highest since early December
  • G7 seeks two price caps for Russian oil products
  • India’s crude imports hit 5-month high in December

NEW YORK, Jan 23 (Reuters) – Oil prices settled mixed on Monday, retreating as investors cashed in on a jump to a seven-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.

Brent crude settled 56 cents higher at $88.19 a barrel. The session high was $89.09 a barrel, the highest since Dec. 1. U.S. West Texas Intermediate (WTI) crude settled 2 cents lower at $81.62 a barrel, off the session high $82.64 a barrel, the highest since Dec. 5.

Prices pulled back at the end of the session as investors took profits, said Phil Flynn, analyst at Price Futures Group.

Still, the market wants to preserve long positions in case Chinese growth resumes, said Sukrit Vijayakar, director of Mumbai-based energy consultancy Trifecta.

Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing out that road traffic congestion in the country’s 15 key cities so far this month is up 22% from a year ago.

Crude oil prices in much of the world’s physical markets have started the year with a rally as China has shown signs of more buying and traders have worried that sanctions on Russia could tighten supply.

“While the (China) reopening itself will no doubt prove to be complicated, particularly over the holiday season, early indications suggest there has been a rise in activity, meaning the economy could perform better,” said OANDA analyst Craig Erlam.

Brent is expected to move back into a range between $90 and $100 as the oil market tightens, Erlam said.

Demand for products has lifted the oil market and refining margins, Flynn said. The 3-2-1 crack spread , a proxy for refining margins, rose to $42.18 per barrel on Monday, the highest since October.

The European Union and Group of Seven (G7) coalition will cap prices of Russian refined products from Feb. 5, in addition to the price cap on Russian crude in place since December and an EU embargo on imports of Russian crude by sea.

The G7 has agreed to delay a review of the level of the price cap on Russian oil to March, a month later than originally planned, to provide time to assess the impact of the oil products price cap.

In India, crude oil imports rose to a five-month high in December, government data showed on Monday, as refiners stocked up discounted Russian fuel amid a steady increase in consumption in the country.

Reporting by Stephanie Kelly in New York; additional reporting by Ron Bousso in London, Mohi Narayan in New Delhi and Sonali Paul in Melbourne
Editing by David Goodman, David Gregorio and Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

A New-York-based correspondent covering the U.S. crude market and member of the energy team since 2018 covering the oil and fuel markets as well as federal policy around renewable fuels.

Read original article here

Chinese pray for health in Lunar New Year as COVID death toll rises

BEIJING, Jan 22 (Reuters) – China rang in the Lunar New Year on Sunday with its people praying for health after three years of stress and financial hardship under the pandemic, as officials reported almost 13,000 new deaths caused by the virus between January 13 and 19.

Queues stretched for about one kilometre (a half-mile) outside the iconic Lama temple in Beijing, which had been repeatedly shut before COVID-19 restrictions ended in early December, with thousands of people waiting for their turn to pray for their loved ones.

One Beijing resident said she wished the year of the rabbit will bring “health to everyone”.

“I think this wave of the pandemic is gone,” said the 57-year-old, who only gave her last name, Fang. “I didn’t get the virus, but my husband and everyone in my family did. I still think it’s important to protect ourselves.”

Earlier, officials reported almost 13,000 deaths related to COVID in hospitals between January 13 and 19, adding to the nearly 60,000 in the month or so before that. Chinese health experts say the wave of infections across the country has already peaked.

The death toll update, from China’s Center for Disease Control and Prevention, comes amid doubts over Beijing’s data transparency and remains extremely low by global standards.

Hospitals and funeral homes were overwhelmed after China abandoned the world’s strictest regime of COVID controls and mass testing on Dec. 7 in an abrupt policy U-turn, which followed historic protests against the curbs.

The death count reported by Chinese authorities excludes those who died at home, and some doctors have said they are discouraged from putting COVID on death certificates.

China on Jan. 14 reported nearly 60,000 COVID-related deaths in hospitals between Dec. 8 and Jan. 12, a huge increase from the 5,000-plus deaths reported previously over the entire pandemic period.

Spending by funeral homes on items from body bags to cremation ovens has risen in many provinces, documents show, one of several indications of COVID’s deadly impact in China.

Some health experts expect that more than one million people will die from the disease in China this year, with British-based health data firm Airfinity forecasting COVID fatalities could hit 36,000 a day this week.

As millions of migrant workers return home for Lunar New Year celebrations, health experts are particularly concerned about people living in China’s vast countryside, where medical facilities are poor compared with those in the affluent coastal areas.

About 110 million railway passenger trips are estimated to have been made during Jan. 7-21, the first 15 days of the 40-day Lunar New Year travel rush, up 28% year-on-year, People’s Daily, the Communist Party’s official newspaper, reported.

A total of 26.23 million trips were made on the Lunar New Year eve via railway, highway, ships and airplanes, half the pre-pandemic levels, but up 50.8% from last year, state-run CCTV reported.

The mass movement of people during the holiday period may spread the pandemic, boosting infections in some areas, but a second COVID wave is unlikely in the near term, Wu Zunyou, chief epidemiologist at the China Center for Disease Control and Prevention, said on Saturday on the Weibo social media platform.

The possibility of a big COVID rebound in China over the next two or three months is remote as 80% of people have been infected, Wu said.

After China re-opened its borders on Jan. 8, some Chinese also booked trips abroad. Asia’s tourist hotspots have been bracing for the return of Chinese tourists, who spent $255 billion a year globally before the pandemic.

“Because of the pandemic, we hadn’t been out of China for three years,” said tourist and business owner Kiki Hu, 28, in Krabi on Thailand’s southwest coast. “Now that we can leave and come here for holiday, I feel so happy and emotional”.

Additional reporting by Beijing newsroom; Writing by Marius Zaharia
Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Exclusive: ECB union says staff losing faith in leadership over inflation, pay

  • 40% of ECB staff has low or no trust
  • Two-thirds say confidence is damaged
  • 63% worried about ECB’s ability to protect purchasing power

FRANKFURT, Jan 18 (Reuters) – (This Jan. 17 story has been corrected to restore the dropped words in paragraph 11)

European Central Bank staff are losing confidence in the institution’s leadership following the ECB’s failure to control inflation and a pay award that lagged the leap in prices, according to a survey by trade union IPSO.

The responses underline that even central banks, whose primary responsibility is fighting inflation, are not immune to staff dissatisfaction with the sharply rising cost of living.

The survey was organised in the context of a dispute between IPSO, which holds six out of nine seats on the ECB’s staff committee, and the central bank’s board over pay and remote-working arrangements.

An ECB spokesperson did not comment directly on IPSO’s findings when asked but pointed to a separate staff survey, run by the ECB itself last year, showing that 83% of nearly 3,000 respondents were proud to work for the ECB and 72% would recommend it.

Results of IPSO’s survey, which largely focused on pay and remote-working arrangements but also included questions about trust in the board, were sent to ECB staff on Tuesday in an email, seen by Reuters.

They showed two-thirds of roughly 1,600 respondents said their trust in Lagarde and the rest of the six-member ECB board had been damaged by recent developments such as high inflation and a pay increase that did not match the rise in prices.

Asked how much trust they had in Lagarde and the board when it comes to leading and managing the ECB, the central bank for the 20 countries that use the euro, just under half of respondents said “moderate” (34.3%) or “high” (14.6%).

But over 40% of respondents said they had “low” (28.6%) or “no” (12%) trust, while 10.5% could not say.

“This is a serious concern for our institution, as no one can correctly lead an organisation without the trust of its workforce,” the union said in its email.

INFLATION SURGE, PAY BATTLES

The survey was the first by IPSO to ask about trust in top management since Christine Lagarde took over as ECB President in late 2019.

A similar IPSO survey of ECB staff, taken just before her predecessor Mario Draghi stepped down, showed 54.5% of 735 respondents rated his presidency “very good” or “outstanding”, with support for his policy measures even higher.

Then, however, inflation in the euro zone had been low for a decade. Its recent surge to multi-decade highs in countries around the world has seen a revival in battles over pay between workers and the companies and institutions that employ them.

And a majority of respondents in the October 2019 survey also complained about a lack of transparency in recruitment and perceived favouritism under Draghi.

The most recent Bank of England staff survey, also conducted in 2019, showed 64% of respondents had “trust and confidence in the Bank’s leadership”.

A 2022 U.S. government survey of employees at departments and federal agencies found that 61% of respondents had “a high level of respect” for their organisation’s senior leaders – roughly stable compared to the previous two years.

The ECB spokesperson also pointed to internal surveys in 2020-21 that found roughly 80% of respondents were satisfied with health-and-safety measures taken by the ECB in response to the coronavirus pandemic.

The latest IPSO survey showed 63% of staff who responded were worried about the ECB’s ability to protect their purchasing power after being handed a pay increase of just 4% last year – or roughly half the rise in consumer prices.

The ECB has been criticised by politicians, bankers and academics for initially underestimating a surge in the cost of living and then making up for it with large and painful increases in borrowing costs.

Lagarde, who is not an economist and had not been a central banker before joining the ECB, colourfully defended her board at an event with staff last month.

“If it wasn’t for them I’d be a sad, lonely cowgirl lost somewhere in the Pampa of monetary policy,” Lagarde said, according to a recording of the Dec. 19 town hall seen by Reuters.

She and fellow board members have long worried about the risk of a potential “wage-price spiral”, where higher salaries feed into prices, which they argue would make it harder for the ECB to bring inflation back down to its 2% target.

But IPSO said that concern is misplaced and workers should not be made to bear the brunt of the current bout in inflation.

“The ECB might be preaching lower real wages, but this is not our stance as your staff union,” it wrote in its message to ECB employees.

Editing by Catherine Evans

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Millions of Chinese workers on the move ahead of Friday travel peak

  • Half a million people now crossing China’s borders per day
  • China now open to world – state leader tells World Economic Forum
  • Medical workers rush to vaccinate elderly

BEIJING, Jan 18 (Reuters) – Millions of urban workers were on the move across China on Wednesday ahead of the expected Friday peak of its Lunar New Year mass migration, as China’s leaders looked to get its COVID-battered economy moving.

Unfettered when officials last month ended three years of some of the world’s tightest COVID-19 restrictions, workers streamed into railway stations and airports to head to smaller towns and rural homes, sparking fears of a broadening virus outbreak.

Economists are scrutinising the holiday season, known as the Spring Festival, for glimmers of rebounding consumption across the world’s second largest economy after new GDP data on Tuesday confirmed a sharp economic slowdown in China.

While some analysts expect that recovery to be slow, China’s Vice-Premier Liu He declared to the World Economic Forum in Switzerland on Tuesday that China was open to the world after three years of pandemic isolation.

National Immigration Administration officials said that, on average, half a million people had been moved in or out of China per day since its borders opened on Jan. 8, state media reported.

But as workers flood out of megacities, such as Shanghai, where officials say the virus has peaked, many are heading to towns and villages where unvaccinated elderly have yet to be exposed to COVID and health care systems are less equipped.

LARGE ROLLING SUITCASES, BOXES OF GIFTS

As the COVID surge intensified, some were putting the virus out of their mind as they headed for the departure gates.

Travellers bustled through railway stations and subways in Beijing and Shanghai, many ferrying large wheeled suitcases and boxes stuffed with food and gifts.

“I used to be a little worried (about the COVID-19 epidemic),” said migrant worker Jiang Zhiguang, waiting among the crowds at Shanghai’s Hongqiao Railway Station.

“Now it doesn’t matter anymore. Now it’s okay if you get infected. You’ll just be sick for two days only,” Jiang, aged 30, told Reuters.

The infection rate in the southern city of Guangzhou, capital of China’s most populous province, has now passed 85%, local health officials announced on Wednesday.

In more isolated areas, state medical workers are this week going door-to-door in some outlying villages to vaccinate the elderly, with the official Xinhua news agency describing the effort on Tuesday as the “last mile”.

Clinics in rural villages and towns are now being fitted with oxygenators, and medical vehicles have also been deployed to isolated areas.

While authorities confirmed on Saturday a huge increase in deaths – announcing that nearly 60,000 people with COVID had died in hospitals between Dec. 8 and Jan. 12 – state media reported that heath officials were not yet ready to give the World Health Organization (WHO) the extra data it is now seeking.

Specifically, the U.N. agency wants information on so-called excess mortality – the number of all deaths beyond the norm during a crisis, the WHO said in a statement to Reuters on Tuesday.

The Global Times, a nationalistic tabloid published by the official People’s Daily, quoted Chinese experts saying the China Center for Disease Control and Prevention was already monitoring such data, but it would take time before it could be released.

Doctors in both public and private hospitals were being actively discouraged from attributing deaths to COVID, Reuters reported on Tuesday.

Reporting By Bernard Orr in Beijing and Beijing and Shanghai newsrooms; Additional reporting By Xihao Jiang in Shanghai; Writing By Greg Torode; Editing by Michael Perry

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

In China, doctors say they are discouraged from citing COVID on death certificates

BEIJING, Jan 17 (Reuters) – During a busy shift at the height of Beijing’s COVID wave, a physician at a private hospital saw a printed notice in the emergency department: doctors should “try not to” write COVID-induced respiratory failure on death certificates.

Instead, if the deceased had an underlying disease, that should be named as the main cause of death, according to the notice, a copy of which was seen by Reuters.

If doctors believe that the death was caused solely by COVID-19 pneumonia, they must report to their superiors, who will arrange for two levels of “expert consultations” before a COVID death is confirmed, it said.

Six doctors at public hospitals across China told Reuters they had either received similar oral instructions discouraging them from attributing deaths to COVID or were aware that their hospitals had such policies.

Some relatives of people who have died with COVID say the disease did not appear on their death certificates, and some patients have reported not being tested for coronavirus despite arriving with respiratory symptoms.

“We have stopped classifying COVID deaths since the reopening in December,” said a doctor at a large public hospital in Shanghai. “It is pointless to do that because almost everyone is positive.”

Such directives have led to criticism by global health experts and the World Health Organization that China has drastically underreported COVID deaths as the coronavirus runs rampant in the country, which abandoned its strict “zero-COVID” regime in December.

On Saturday, officials said 60,000 people with COVID-19 had died in hospitals since China’s policy U-turn, a roughly ten-fold increase from previously reported figures, but still short of expectations of international experts, who have said China could see more than a million COVID-related deaths this year.

China’s Center for Disease Control (CDC) and National Health Commission (NHC) did not immediately respond to Reuters’ requests for comment.

The doctors in this article declined to be named because they are not permitted to speak to the media.

Several said they were told such guidance came from “the government”, though none knew from which department, a common situation in China when politically sensitive instructions are disseminated.

Three other doctors at public hospitals in different cities said they were unaware of any such guidance.

One of them, a senior emergency room doctor in Shandong province, said doctors were issuing death certificates based on the actual cause of death, but “how to categorise” those deaths is up to the hospitals or local officials.

‘LOOKS LOW’

Since the start of the pandemic, which first emerged three years ago in its central city of Wuhan, China has drawn heavy criticism for not being transparent over the virus – an accusation it has repeatedly rejected.

Before Saturday, China was reporting five or fewer COVID deaths per day. Of the nearly 60,000 COVID-related fatalities since Dec. 8 it announced on Saturday since, fewer than 10% were caused by respiratory failure because of COVID. The rest resulted from a combination of COVID and other diseases, Jiao Yahui, head of the Bureau of Medical Administration under the National Health Commission (NHC), said on Saturday.

Michael Baker, a public health scholar at the University of Otago in New Zealand, said the updated death toll still “looks low” compared with the high level of infection in China.

“Most countries are finding that most deaths from COVID are caused directly by the infection rather than by a combination of COVID and other diseases,” he said. “By contrast, reported deaths in China are mainly (90%) a combination of COVID and other infections, which also suggests that deaths directly from COVID infection are under-reported in China.”

Yanzhong Huang, senior fellow for global health at the Council on Foreign Relations in New York, said it was unclear whether the new data accurately reflected actual fatalities, in part because the numbers include only deaths in hospitals.

The World Health Organization (WHO) on Monday recommended that China monitor excess mortality to gain a fuller picture of the impact of the surge in COVID.

Excess mortality is when the number of deaths for a given period is higher than it should be relative to historical averages.

TESTING ENDS

Seven people told Reuters that COVID was not mentioned on the death certificates of their recently deceased relatives, although the relatives had either tested positive for the virus or displayed COVID-like symptoms.

Social media has been full of similar reports.

When a Beijing resident surnamed Yao brought his COVID-positive 87-year-old aunt to a large public hospital late last month with breathing problems, doctors did not ask whether she had the virus and did not mention COVID, Yao said.

“The hospital was full of patients, all in their 80s or 90s, and doctors had no time to talk to anyone,” Yao said, adding that everyone seemed to have similar COVID-like symptoms.

Patients, including his aunt, were rigorously tested, although not for COVID, before being told they had pneumonia. But the hospital told him it had run out of medicine, so they could only go home.

Ten days later she recovered.

Medical staff at public hospitals in several cities in China said PCR testing, which under “zero COVID” was a near daily requirement for large parts of the population, has now been all but abandoned.

Taking the focus off testing may be the best way to maximise resources when hospitals have been overwhelmed, two experts told Reuters.

Ben Cowling, an epidemiologist at Hong Kong University, said almost all patients with acute respiratory problems would have COVID: “Since antivirals are in very short supply, I don’t think laboratory testing will make much difference to case management.”

‘BE CAUTIOUS’

A senior doctor in the eastern city of Ningbo said physicians there were told to be “cautious” about saying someone had died of COVID, but if they did wish to do so they would need to get approval.

No other disease required the same level of “caution” for entry on a death certificate, he said.

The doctor at a large public hospital in Shanghai said that weekly death rates since the recent COVID wave were three or four times higher than normal for this time of year. Most had more than one illness, but COVID worsened their conditions, she said.

“On the death certificate we fill in one main cause of death, and two to three sub-causes of death, so we basically leave out COVID,” she said.

“There’s no other way but for us to follow the orders given by the hospital, which come from the government. I am too unimportant to make any decision,” she said.

Reporting by Martin Quin Pollard in Beijing and Engen Tham in Shanghai. Additional reporting by Brenda Goh in Shanghai and the Hong Kong, Shanghai and Beijing Newsrooms; Editing by Tony Munroe and Gerry Doyle

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

China COVID peak to last 2-3 months, hit rural areas next -expert

  • Peak of COVID wave seen lasting 2-3 months – epidemiologist
  • Elderly in rural areas particularly at risk
  • People mobility indicators tick up, but yet to fully recover

BEIJING, Jan 13 (Reuters) – The peak of China’s COVID-19 wave is expected to last two to three months, and will soon swell over the vast countryside where medical resources are relatively scarce, a top Chinese epidemiologist has said.

Infections are expected to surge in rural areas as hundreds of millions travel to their home towns for the Lunar New Year holidays, which officially start from Jan. 21, known before the pandemic as the world’s largest annual migration of people.

China last month abruptly abandoned the strict anti-virus regime of mass lockdowns that fuelled historic protests across the country in late November, and finally reopened its borders this past Sunday.

The abrupt dismantling of restrictions has unleashed the virus onto China’s 1.4 billion people, more than a third of whom live in regions where infections are already past their peak, according to state media.

But the worst of the outbreak was not yet over, warned Zeng Guang, the former chief epidemiologist at the Chinese Center for Disease Control and Prevention, according to a report published in local media outlet Caixin on Thursday.

“Our priority focus has been on the large cities. It is time to focus on rural areas,” Zeng was quoted as saying.

He said a large number of people in the countryside, where medical facilities are relatively poor, are being left behind, including the elderly, the sick and the disabled.

Authorities have said they were making efforts to improve supplies of antivirals across the country. Merck & Co’s (MRK.N) molnupiravir was made available in China from Friday.

The World Health Organization this week also warned of the risks stemming from holiday travelling.

The UN agency said China was heavily under-reporting deaths from COVID, although it is now providing more information on its outbreak.

“Since the outbreak of the epidemic, China has shared relevant information and data with the international community in an open, transparent and responsible manner,” foreign ministry official Wu Xi told reporters.

Health authorities have been reporting five or fewer deaths a day over the past month, numbers which are inconsistent with the long queues seen at funeral homes and the body bags seen coming out of crowded hospitals.

China has not reported COVID fatalities data since Monday. Officials said in December they planned to issue monthly, rather than daily updates, going forward.

Although international health experts have predicted at least 1 million COVID-related deaths this year, China has reported just over 5,000 since the pandemic began, one of the lowest death rates in the world.

DIPLOMATIC TENSIONS

Concerns over data transparency were among the factors that prompted more than a dozen countries to demand pre-departure COVID tests from travellers arriving from China.

Beijing, which had shut its borders from the rest of the world for three years and still demands all visitors get tested before their trip, objects to the curbs.

Wu said accusations by individual countries were “completely unreasonable, unscientific and unfounded.”

Tensions escalated this week with South Korea and Japan, with China retaliating by suspending short-term visas for their nationals. The two countries also limit flights, test travellers from China on arrival, and quarantine the positive ones.

Japan’s Chief Cabinet Secretary Hirokazu Matsuno said on Friday Tokyo will continue to demand transparency, labelling Beijing’s retaliation as extremely “regrettable.”

Parts of China were returning to normal life.

In the bigger cities in particular, residents are increasingly on the move, pointing to a gradual, though so far slow, rebound in consumption and economic activity.

An immigration official said on Friday 490,000 daily trips on average were made in and out of China since it reopened on Jan. 8, only 26% of the pre-pandemic levels.

Singapore-based Chu Wenhong was among those who finally got reunited with their parents for the first time in three years.

“They both got COVID, and are quite old. I feel quite lucky actually, as it wasn’t too serious for them, but their health is not very good,” she said.

CAUTION

While China’s reopening has given a boost to financial assets globally, policymakers around the world worry it may revive inflationary pressures.

However, December’s trade data released on Friday provided reasons to be cautious about China’s recovery pace.

Jin Chaofeng, whose company exports outdoor rattan furniture, said he has no expansion or hiring plans for 2023.

“With the lifting of COVID curbs, domestic demand is expected to improve but not exports,” he said.

Data next week is expected to show China’s economy grew just 2.8% in 2022, its second-slowest since 1976, the final year of Mao Zedong’s decade-long Cultural Revolution, according to a Reuters poll.

Some analysts say last year’s lockdowns will leave permanent scars on China, including by worsening its already bleak demographic outlook.

Growth is then seen rebounding to 4.9% this year, still well below the pre-pandemic trend.

Additional reporting by the Beijing and Shanghai newsrooms; Writing by Marius Zaharia; Editing by Raju Gopalakrishnan

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Chinese fret over elderly as WHO warns of holiday COVID surge

  • Two billion trips expected over Lunar New Year
  • Virus spreading from cities to vulnerable villages
  • WHO says China response challenged by lack of data
  • China’s grand reopening marred by Japan, Korea spat

BEIJING, Jan 12 (Reuters) – People in China worried on Thursday about spreading COVID-19 to aged relatives as they planned returns to their home towns for holidays that the World Health Organization warns could inflame a raging outbreak.

The Lunar New Year holiday, which officially starts on Jan. 21, comes after China last month abandoned a strict anti-virus regime of mass lockdowns that prompted widespread frustration and boiled over into historic protests.

That abrupt U-turn unleashed COVID on a population of 1.4 billion which lacks natural immunity, having been shielded from the virus since it first erupted in late 2019, and includes many elderly who are not fully vaccinated.

The outbreak spreading from China’s mega-cities to rural areas with weaker medical resources is overwhelming some hospitals and crematoriums.

With scant official data from China, the WHO on Wednesday said it would be challenging to manage the virus over a holiday period considered the world’s largest annual migration of people.

Other warnings from top Chinese health experts for people to avoid aged relatives during the holidays shot to the most-read item on China’s Twitter-like Weibo on Thursday.

“This is a very pertinent suggestion, return to the home town … or put the health of the elderly first,” wrote one user. Another user said they did not dare visit their grandmother and would leave gifts for her on the doorstep.

“This is almost the New Year and I’m afraid that she will be lonely,” the user wrote.

More than two billion trips are expected across China over the broader Lunar New Year period, which started on Jan. 7 and runs for 40 days, according to the transport ministry. That is double last year’s trips and 70% of those seen in 2019 before the pandemic emerged in the central Chinese city of Wuhan.

“I will stay at home and avoid going to very crowded places,” said Chen, a 27-year-old documentary filmmaker in Beijing who plans to visit her home town in the eastern province of Zhejiang.

Chen said she would disinfect her hands before meeting elderly relatives, such as her grandmother, who has managed to avoid infection.

LACK OF DATA CRITICISED

The WHO and foreign governments have criticised China for not being forthright about the scale and severity of its outbreak, which has led several countries to impose restrictions on Chinese travellers.

China has been reporting five or fewer deaths a day over the past month, numbers that are inconsistent with the long queues seen at funeral homes. The country did not report COVID deaths data on Tuesday and Wednesday.

Liang Wannian, the head of a COVID expert panel under the national health authority, told reporters that deaths could only be accurately counted after the pandemic was over.

Although international health experts have predicted at least a million COVID-related deaths this year, China has reported just over 5,000 since the pandemic began, a fraction of what other countries have reported as they removed restrictions.

Looking beyond the death toll, investors are betting that China’s reopening will reinvigorate a $17 trillion economy suffering its lowest growth in nearly half a century.

That has lifted Asian stocks to a seven-month peak, strengthened China’s yuan currency against the U.S. dollar and bolstered global oil prices on hopes of fresh demand from the world’s top importer.

China’s growth is likely to rebound to 4.9% in 2023, according to a Reuters poll of economists released on Thursday. GDP likely grew just 2.8% in 2022 as lockdowns weighed on activity and confidence, according to the poll, braking sharply from 8.4% growth in 2021.

TRAVEL CHALLENGES

After three years of isolation from the outside world, China on Sunday dropped quarantine mandates for inbound visitors in a move expected to eventually also stimulate outbound travel.

But concerns about China’s outbreak has prompted more than a dozen countries to demand negative COVID test results from people arriving from China.

Among them, South Korea and Japan have also limited flights and require tests on arrival, with passengers showing up as positive being sent to quarantine.

In a deepening spat between the regional rivals, China has in turn stopped issuing short-term visas and suspended transit visa exemptions for South Korean and Japanese nationals.

Despite Beijing’s lifting of travel curbs, outbound flight bookings from China were at only 15% of pre-pandemic levels in the week after the country announced it would reopen its borders, travel data firm ForwardKeys said on Thursday.

Low airline capacity, high air fares, new pre-flight COVID-19 testing requirements by many countries and a backlog of passport and visa applications pose challenges as the industry looks to recovery, ForwardKeys Vice President Insights Olivier Ponti said in a statement.

Hong Kong Airlines on Thursday said it does not expect to return to capacity until mid-2024.

Reporting by Bernard Orr, Liz Lee, Eduardo Baptista and Jing Wang in Beijing; Writing by John Geddie; Editing by Lincoln Feast and Nick Macfie

Our Standards: The Thomson Reuters Trust Principles.

Read original article here