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China imposes transit curbs for S.Korea, Japan in growing COVID spat

  • New curbs for S.Korea, Japan nationals transiting China
  • China says visa suspensions for S.Korea, Japan “reasonable”
  • Escalating diplomatic spat may complicate economic relations
  • Social media users lash out at S.Korea’s “insulting” COVID curbs

BEIJING, Jan 11 (Reuters) – China introduced transit curbs for South Korean and Japanese nationals on Wednesday, in an escalating diplomatic spat over COVID-19 curbs that is marring the grand re-opening of the world’s second-largest economy after three years of isolation.

China removed quarantine mandates for inbound travellers on Sunday, one of the last vestiges of the world’s strictest regime of COVID restrictions, which Beijing abruptly began dismantling in early December after historic protests.

But worries over the scale and impact of the outbreak in China, where the virus is spreading unchecked, have 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 South Korea, quarantine is at the traveller’s own cost.

In response, the Chinese embassies in Seoul and Tokyo said on Tuesday they had suspended issuing short-term visas for travellers to China, with the foreign ministry slamming the testing requirements as “discriminatory.”

That prompted an official protest from Japan to China, while South Korean foreign minister Park Jin said that Seoul’s decision was based on scientific evidence, not discriminatory and that China’s countermeasures were “deeply regrettable.”

In a sign of escalating tensions on Wednesday, China’s immigration authority suspended its transit visa exemptions for South Koreans and Japanese.

The spat may affect economic relations between the three neighbours as well.

Japanese department store operator Isetan Mitsukoshi Holdings Ltd (3099.T) and supermarket operator Aeon Co (8267.T) said they may have to rethink personnel transfers to China depending on how long the suspension lasts.

“We won’t be able to make short-term business trips, but such trips had dwindled during COVID anyway, so we don’t expect an immediate impact. But if the situation lasts long, there will be an effect,” said a South Korean chip industry source who declined to be identified, as the person was not authorised to speak to media.

China requires negative test results from visitors from all countries.

COUNTING DEATHS

Some of the governments that announced curbs on travellers from China cited concerns over Beijing’s data transparency.

The World Health Organization has said China was underreporting deaths.

China’s health authorities have been reporting five or fewer deaths a day over the past month, numbers that are inconsistent with the long queues seen at funeral homes. In a first, they did not report COVID fatalities data on Tuesday.

China’s Center for Disease Control and Prevention and the National Health Commission did not immediately respond to requests for comment.

Without mentioning whether daily reporting had been discontinued, Liang Wannian, head of a COVID expert panel under the national health authority, told reporters deaths can only be accurately counted after the pandemic is over.

China should ultimately determine death figures by looking at excess mortality, Wang Guiqiang, the head of the infectious diseases department at Peking University First Hospital said at the same news conference.

Although international health experts have predicted at least one 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 reopened.

China says it has been transparent with its data.

State media said the COVID wave was already past its peak in the provinces of Henan, Jiangsu, Zhejiang, Guangdong, Sichuan and Hainan, as well as in the large cities of Beijing and Chongqing – home to more than 500 million people combined.

‘INSULTING’

On Wednesday, Chinese state media devoted extensive coverage of what they called as “discriminatory” border rules in South Korea and Japan.

Nationalist tabloid Global Times defended Beijing’s retaliation as a “direct and reasonable response to protect its own legitimate interests, particularly after some countries are continuing hyping up China’s epidemic situation by putting travel restrictions for political manipulation.”

Chinese social media anger mainly targeted South Korea, whose border measures are the strictest among the countries that announced new rules.

Videos circulating online showed special lanes coordinated by soldiers in uniform for arrivals from China at the airport, with travellers given yellow lanyards with QR codes for processing test results.

One user of China’s Twitter-like Weibo said singling out Chinese travellers was “insulting” and akin to “people treated as criminals and paraded on the streets.”

Annual spending by Chinese tourists abroad reached $250 billion before the pandemic, with South Korea and Japan among the top shopping destinations.

Repeated lockdowns have hammered China’s $17 trillion economy. The World Bank estimated its 2022 growth slumped to 2.7%, its second-slowest pace since the mid-1970s after 2020.

It predicted a rebound to 4.3% for 2023, but that is 0.9 percentage points below its June forecast because of the severity of COVID disruptions and weakening external demand.

($1 = 6.7666 Chinese yuan renminbi)

Additional reporting by Beijing Newsroom; Kaori Kaneko, Mari Shiraki and Elaine Lies in Tokyo; Joyce Lee, Hyunsu Yim and Heekyong Yang in Seoul
Writing by Marius Zaharia; Editing by Gerry Doyle and Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

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China retaliates against South Korea’s COVID curbs, says outbreaks past peaks

  • China embassy decries “discriminatory” S.Korea border rules
  • Some cities say peak of COVID infections was last month
  • Chinese state media criticise Pfizer over Paxlovid price

BEIJING, Jan 10 (Reuters) – Beijing retaliated on Tuesday against South Korea’s COVID-19 curbs on travellers from China, while state media further downplayed the severity of the outbreak in the last major economy to reopen its borders after three years of isolation.

China ditched mandatory quarantines for arrivals and allowed travel to resume across its border with Hong Kong on Sunday, removing the last major restrictions under the “zero-COVID” regime which it abruptly began dismantling in early December after historic protests against the curbs.

But the virus is spreading unchecked among its 1.4 billion people and worries over the scale and impact of its outbreak have prompted South Korea, the United States and other countries to require negative COVID tests from travellers from China.

Although China imposes similar testing requirements for all arrivals, foreign ministry spokesperson Wang Wenbin told reporters on Tuesday the entry curbs for Chinese travellers were “discriminatory.”

“We will take reciprocal measures,” Wang said, without elaborating.

The Chinese embassy in South Korea has suspended issuing short-term visas for South Korean visitors, it said on Tuesday, the first retaliatory move against nations imposing COVID-19 curbs on travellers from China.

The embassy will adjust the policy subject to the lifting of South Korea’s “discriminatory entry restrictions” against China, it said on its official WeChat account.

Kyodo news agency, quoting multiple travel industry sources, said China has told travel agencies that it has stopped issuing new visas in Japan. An AFP journalist tweeted that the Chinese embassy in Japan released a statement confirming the curbs on Tuesday but removed it from its website within minutes.

With the virus let loose, China has stopped publishing daily infection tallies. It has been reporting five or fewer deaths a day since the policy U-turn, figures that have been disputed by the World Health Organization and are inconsistent with funeral reporting surging demand.

Some governments have raised concerns about Beijing’s data transparency as international experts predict at least 1 million deaths in China this year. Washington has also raised concerns about future potential mutations of the virus.

China dismisses criticism over its data as politically-motivated attempts to smear its “success” in handling the pandemic and said any future mutations are likely to be more infectious but less harmful.

“Since the outbreak, China has had an open and transparent attitude,” the foreign ministry’s Wang said.

PAST THE PEAK

State media downplayed the severity of the outbreak.

An article in Health Times, a publication managed by People’s Daily, the ruling Communist Party’s official newspaper, quoted several officials as saying infections have been declining in the capital Beijing and several Chinese provinces.

Kan Quan, director of the Office of the Henan Provincial Epidemic Prevention and Control, said nearly 90% of people in the central province of 100 million people had been infected as of Jan. 6.

Beijing acting mayor Yin Yong said the capital was also past its peak. Li Pan, from the Municipal Health Commission in the city of Chongqing, said the peak there was reached on Dec. 20.

In the eastern province of Jiangsu, the peak was reached on Dec. 22, while in neighbouring Zheijiang province “the first wave of infections has passed smoothly,” officials said.

Financial markets looked through the latest border curbs as mere inconvenience, with the yuan hitting a nearly five-month high.

Although daily flights in and out of China are still at a tenth of pre-COVID levels, businesses across Asia, from South Korean and Japanese shop owners to Thai tour bus operators and K-pop groups celebrated the prospect of more Chinese tourists.

Chinese shoppers spent $250 billion a year overseas before COVID.

PFIZER CRITICISM

The border rules were not the only COVID conflict brewing in China.

State media lashed out at Pfizer Inc (PFE.N) over the price for its COVID treatment Paxlovid.

“It is not a secret that U.S. capital forces have already accumulated quite a fortune from the world via selling vaccines and drugs, and the U.S. government has been coordinating all along,” nationalist tabloid Global Times said in an editorial.

Pfizer’s Chief Executive Albert Bourla said on Monday the company was in discussions with Chinese authorities about a price for Paxlovid, but not over licensing a generic version in China.

China’s abrupt change of course in COVID policies has caught many hospitals ill-equipped, while smaller cities were left scrambling to secure basic anti-fever drugs.

Yu Weishi, chairman of Youcare Pharmaceutical Group, told Reuters his firm boosted output of its anti-fever drugs five-fold to one million boxes a day in the past month.

Wang Lili, general manager at another pharmaceutical firm, CR Double Crane (600062.SS), told Reuters that intravenous drips were their most in-demand product.

“We are running 24/7,” Wang said.

Reporting by Beijing and Shanghai bureaus; Writing by Marius Zaharia; Editing by Raju Gopalakrishnan

Our Standards: The Thomson Reuters Trust Principles.

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Oil jumps 3% on demand optimism as China borders reopen

  • China reopens borders in final farewell to zero-COVID
  • Hopes of slower U.S. interest rate hikes boost risk sentiment
  • Oil’s gain follows more than 8% drop last week

LONDON, Jan 9 (Reuters) – Oil extended gains on Monday, rising more than 3% after China’s move to reopen its borders boosted the outlook for fuel demand and overshadowed global recession concerns.

The rally was part of a wider boost for risk sentiment supported by both the reopening of the world’s biggest crude importer and hopes for less-aggressive increases to U.S. interest rates, with equities rising and the dollar weakening.

Brent crude was up $2.38, or 3.03%, at $80.95 a barrel by 1312 GMT while U.S. West Texas Intermediate crude rose $2.36, or 3.2%, to $76.13.

“If recession is avoided, global oil demand and demand growth will remain resilient,” said Tamas Varga of oil broker PVM, adding that developments in China were the main reason for Monday’s gains.

“The gradual reopening of the Chinese economy will provide an additional and immeasurable layer of price support,” he said.

The rally followed a drop last week of more than 8% for both oil benchmarks, their biggest weekly declines at the start of a year since 2016.

As part of a “new phase” in the fight against COVID-19, China opened its borders over the weekend for the first time in three years. Domestically, about 2 billion trips are expected during the Lunar New Year season, nearly double last year’s and 70% of 2019 levels, Beijing says.

In oil-specific developments, China issued a second batch of 2023 crude import quotas, according to sources and documents reviewed by Reuters, raising the total for this year by 20% from the same time last year.

Despite Monday’s oil rebound, there is still concern that the massive flow of Chinese travellers could cause another surge in COVID infections while broader economic concerns also linger.

Those concerns are reflected in oil’s market structure. Both the near-term Brent and U.S. crude contracts are trading at a discount to the next month, a structure known as contango, which typically indicates bearish sentiment. ,

Reporting by Alex Lawler
Additional reporting by Florence Tan and Jeslyn Lerh
Editing by David Goodman

Our Standards: The Thomson Reuters Trust Principles.

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Chinese rush to renew passports as COVID border curbs lifted

  • China dropped quarantine for visitors on Sunday
  • Latest move in easing that has let virus run free
  • Several nations demand COVID tests from China travellers
  • Chinese stocks, yuan rally on growth hopes

BEIJING, Jan 9 (Reuters) – People joined long queues outside immigration offices in Beijing on Monday, eager to renew their passports after China dropped COVID border controls that had largely prevented its 1.4 billion residents from travelling for three years.

Sunday’s reopening is one of the last steps in China’s dismantling of its “zero-COVID” regime, which began last month after historic protests against curbs that kept the virus at bay but caused widespread frustration among its people.

Waiting to renew his passport in a line of more than 100 people in China’s capital, 67-year-old retiree Yang Jianguo told Reuters he was planning to travel to the United States to see his daughter for the first time in three years.

“She got married last year but had to postpone the wedding ceremony because we couldn’t go over to attend it. We’re very glad we can now go,” Yang said, standing alongside his wife.

China’s currency and stock markets strengthened on Monday, as investors bet the reopening could help reinvigorate a $17 trillion economy suffering its lowest growth in nearly half a century.

Beijing’s move to drop quarantine requirements for visitors is expected to boost outbound travel, as residents will not face those restrictions when they return.

But flights are scarce and several nations are demanding negative tests from visitors from China, seeking to contain an outbreak that is overwhelming many of China’s hospitals and crematoriums. China, too, requires pre-departure negative COVID tests from travellers.

China’s top health officials and state media have repeatedly said COVID infections are peaking across the country and they are playing down the threat now posed by the disease.

“Life is moving forward again!,” the official newspaper of the Communist Party, the People’s Daily, wrote in an editorial praising the government’s virus policies late on Sunday which it said had moved from “preventing infection” to “preventing severe disease”.

“Today, the virus is weak, we are stronger.”

Officially, China has reported just 5,272 COVID-related deaths as of Jan. 8, one of the lowest rates of death from the infection in the world.

But the World Health Organization has said China is under-reporting the scale of the outbreak and international virus experts estimate more than one million people in the country could die from the disease this year.

Shrugging off those gloomy forecasts, Asian shares climbed to a five-month high on Monday while China’s yuan firmed to its strongest level against the dollar since mid-August.

China’s blue-chip index (.CSI300) gained 0.7%, while the Shanghai Composite Index (.SSEC) rose 0.5% and Hong Kong’s Hang Seng Index (.HSI) climbed 1.6%.

“The ending of the zero-COVID policy is … going to have a major positive impact on domestic spending,” Ralph Hamers, group chief executive officer at UBS, told the Swiss bank’s annual Greater China conference on Monday.

“We believe there is a lot of opportunity for those committed to investing in China.”

‘HUGE RELIEF’

“It’s a huge relief just to be able to go back to normal … just come back to China, get off the plane, get myself a taxi and just go home,” Michael Harrold, 61, a copy editor in Beijing told Reuters at Beijing Capital International Airport on Sunday after he arrived on a flight from Warsaw.

Harrold said he had been anticipating having to quarantine and do several rounds of testing on his return when he left for Europe for a Christmas break in early December.

State broadcaster CCTV reported on Sunday that direct flights from South Korea to China were close to sold out. The report quickly shot to the most-read item on Chinese social media site Weibo.

In the near term, a spike in demand from travellers will be hampered by the limited number of flights to and from China, which are currently at a small fraction of pre-COVID levels.

Flight Master data showed that on Sunday, China had a total of 245 international inbound and outbound flights, compared with 2,546 flights on the same day in 2019 – a fall of 91%.

Korean Air said earlier this month that it was halting a plan to increase flights to China due to Seoul’s cautious stance towards Chinese travellers. South Korea like many other countries now requires travellers from China, Macau and Hong Kong to provide negative COVID test results before departure.

Taiwan, which started testing arrivals from China on Jan. 1, said on Monday that nearly 20% of those tested so far were positive for COVID.

China’s domestic tourism revenue in 2023 is expected to recover to 70-75% of pre-COVID levels, but the number of inbound and outbound trips is forecast to recover to only 30-40% of pre-COVID levels this year, China News reported on Sunday.

Reporting by Yew Lun Tian, Liz Lee, Josh Arslan, Eduardo Baptista and Sophie Yu in Beijing; Ben Blanchard in Taipei; Writing by John Geddie; Editing by Raju Gopalakrishnan

Our Standards: The Thomson Reuters Trust Principles.

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China reopens borders in final farewell to zero-COVID

HONG KONG/BEIJING, Jan 8 (Reuters) – Travellers began streaming into mainland China by air, land and sea on Sunday, many eager for long-awaited reunions, as Beijing opened borders that have been all but shut since the start of the COVID-19 pandemic.

After three years, mainland China opened sea and land crossings with Hong Kong and ended a requirement for incoming travellers to quarantine, dismantling a final pillar of a zero-COVID policy that had shielded China’s people from the virus but also cut them off from the rest of the world.

China’s easing over the past month of one of the world’s tightest COVID regimes followed historic protests against a policy that included frequent testing, curbs on movement and mass lockdowns that heavily damaged the second-biggest economy.

Long queues formed at Hong Kong’s international airport for flights to mainland cities including Beijing, Tianjin and Xiamen and some Hong Kong media outlets estimated that thousands of people were travelling across.

“I’m so happy, so happy, so excited. I haven’t seen my parents for many years,” said Hong Kong resident Teresa Chow as she and dozens of other travellers prepared to cross into mainland China from Hong Kong’s Lok Ma Chau checkpoint early on Sunday.

“My parents are not in good health, and I couldn’t go back to see them even when they had colon cancer, so I’m really happy to go back and see them now,” she said, adding that she plans to head to her hometown in eastern China’s Ningbo city.

Investors hope the reopening will eventually reinvigorate a $17-trillion economy suffering its lowest growth in nearly half a century. But the abrupt policy reversal has triggered a massive wave of infections that is overwhelming some hospitals and causing business disruptions.

The border opening follows Saturday’s start of “chun yun”, the first 40-day period of Lunar New Year travel, which before the pandemic was the world’s largest annual migration of people returning to their hometowns of taking holidays with family.

Some 2 billion trips are expected to be made this season, nearly double last year’s movement and recovering to 70% of 2019 levels, the government says.

Many Chinese are also expected to start travelling abroad, a long-awaited shift for tourist spots in countries such as Thailand and Indonesia, though several governments – worried about China’s COVID spike – are imposing curbs on travellers from the country.

Travel will not quickly return to pre-pandemic levels due to such factors as a dearth of international flights, analysts say.

China on Sunday also resumed issuing passports and travel visas for mainland residents, and ordinary visas and residence permits for foreigners. Beijing has quotas on the number of people who can travel between Hong Kong and China each day.

VISITORS, HOMECOMINGS

At the Beijing Capital International Airport, families and friends exchanged emotional hugs and greetings with passengers arriving from Hong Kong, Warsaw and Frankfurt at the airport’s terminal 3, meetings at the arrival hall that would have been impossible just a day ago due to a now cancelled requirement for travellers from abroad to quarantine.

“I’ve been looking forward to the reopening for a long time. Finally we are reconnected with the world. I’m thrilled, I can’t believe it’s happening,” said a business woman surnamed Shen, 55, who flew in from Hong Kong.

Other people waiting at the airport included a group of females fans carrying long lens cameras in hope of catching a glimpse of South Korean boy band Tempest, the first idol group from South Korea to enter China in the past three years.

“It’s so good to see them in person! They are much more handsome and taller than I expected,” a 19-year-old who gave her name as Xiny told Reuters after chasing the seven-member boyband, who flew in from Seoul via the Chinese city of Dalian.

“With quarantine restrictions lifted, it’s going to be so much more convenient to fly over to see them, and for them to come to Beijing,” she said.

PROTESTS

Such scenes of reunions, however, jarred with others of protests in some cities around China over the weekend, in a reminder of how the economy remains under strain.

Protests are not rare in China, which has over the years seen people come out in large numbers over issues such as financial or property scams. But authorities have been on higher alert after widespread protests in Chinese cities and top universities at the end of November against COVID restrictions.

On Saturday, hundreds of Tesla (TSLA.O) owners gathered at the automaker’s showrooms and distribution centres in China to protest against its decision to slash prices for the second time in three months, a move it made to spur sales at a time of faltering demand in the world’s largest auto market.

(This story has been refiled to correct paragraph 9 to say 2 billion trips to be made, not 2 billion people to travel)

Reporting by Joyce Zhou in Hong Kong, Yew Lun Tian and Josh Arslan in Beijing; Writing by Brenda Goh in Shanghai; Editing by William Mallard

Our Standards: The Thomson Reuters Trust Principles.

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China’s ‘great migration’ kicks-off under shadow of COVID

SHANGHAI, Jan 7 (Reuters) – China on Saturday marked the first day of “chun yun”, the 40-day period of Lunar New Year travel known pre-pandemic as the world’s largest annual migration of people, bracing for a huge increase in travellers and the spread of COVID-19 infections.

This Lunar New Year public holiday, which officially runs from Jan. 21, will be the first since 2020 without domestic travel restrictions.

Over the last month China has seen the dramatic dismantling of its “zero-COVID” regime following historic protests against a policy that included frequent testing, restricted movement, mass lockdowns and heavy damage to the world’s No.2 economy.

Investors are hoping that the reopening will eventually reinvigorate a $17-trillion economy suffering its lowest growth in nearly half a century.

But the abrupt changes have exposed many of China’s 1.4 billion population to the virus for the first time, triggering a wave of infections that is overwhelming some hospitals, emptying pharmacy shelves of medicines and causing long lines to form at crematoriums.

The Ministry of Transport said on Friday that it expects more than 2 billion passengers to take trips over the next 40 days, an increase of 99.5% year-on-year and reaching 70.3% of trip numbers in 2019.

There was mixed reaction online to that news, with some comments hailing the freedom to return to hometowns and celebrate the Lunar New Year with family for the first time in years.

Many others, however, said they would not travel this year, with worry of infecting elderly relatives a common theme.

“I dare not go back to my hometown, for fear of bringing the poison back,” said one such comment on the Twitter-like Weibo.

There are widespread concerns that the great migration of workers in cities to their hometowns will cause a surge in infections in smaller towns and rural areas that are less well-equipped with ICU beds and ventilators to deal with them.

Authorities say they are boosting grassroots medical services, opening more rural fever clinics and instituting a “green channel” for high risk patients, especially elderly people with underlying health conditions, to be transferred from villages directly to higher level hospitals.

“China’s rural areas are wide, the population is large, and the per capita medical resources are relatively insufficient,” National Health Commission spokesman Mi Feng said on Saturday.

“It’s necessary to provide convenient services, accelerate vaccination for the elderly in rural areas and the construction of grassroots lines of defense.”

INFECTION PEAK REACHED

Some analysts are now saying the current wave of infections may have already peaked.

Ernan Cui, an analyst at Gavekal Dragonomics in Beijing, cited several online surveys as indicating that rural areas were already more widely exposed to COVID infections than initially thought, with an infection peak already reached in most regions, noting there was “not much difference between urban and rural areas.”

On Sunday China will reopen its border with Hong Kong and will also end a requirement for travellers coming from abroad to quarantine. That effectively opens the door for many Chinese to travel abroad for the first time since borders slammed shut nearly three years ago, without fear of having to quarantine on their return.

Jillian Xin, who has three children and who lives in Hong Kong, said she was “incredibly excited” about the border opening, especially as it means seeing family in Beijing more easily.

“For us, the border opening means my kids can finally meet their grandparents for the first time since the pandemic began,” she said. “Two of our children have never been able to see their grandpa, so we cannot wait for them to meet.”

China’s surge in cases has caused concern internationally and more than a dozen countries are now demanding COVID tests from travellers from China. The World Health Organisation said on Wednesday that China’s COVID data underrepresents the number of hospitalisations and deaths from the disease.

Chinese officials and state media have defended the handling of the outbreak, playing down the severity of the surge and denouncing foreign travel requirements for its residents.

On Saturday in Hong Kong, people who had made appointments had to queue for about 90 minutes at a centre for PCR tests needed for travel to countries including mainland China.

TREATMENT TO THE FORE

For much of the pandemic, China poured resources into a vast PCR testing program to track and trace COVID-19 cases, but the focus is now shifting to vaccines and treatment.

In Shanghai, for example, the city government on Friday announced an end to free PCR tests for residents from Jan. 8.

A circular published by four government ministries Saturday signalled a reallocation of financial resources to treatment, outlining a plan for public finances to subsidise 60% of treatment costs until March 31.

Meanwhile, sources told Reuters that China is in talks with Pfizer Inc (PFE.N) to secure a licence that will allow domestic drugmakers to manufacture and distribute a generic version of the U.S. firm’s COVID antiviral drug Paxlovid in China.

Many Chinese have been attempting to buy the drug abroad and have it shipped to China.

On the vaccine front, China’s CanSino Biologics Inc (6185.HK) announced it has begun trial production for its COVID mRNA booster vaccine, known as CS-2034.

China has relied on nine domestically-developed vaccines approved for use, including inactivated vaccines, but none have been adapted to target the highly-transmissible Omicron variant and its offshoots currently in circulation.

The overall vaccination rate in the country is above 90%, but the rate for adults who have had booster shots drops to 57.9%, and to 42.3% for people aged 80 and older, according to government data released last month.

China reported three new COVID deaths in the mainland for Friday, bringing its official virus death toll since the pandemic began to 5,267, one of the lowest in the world.

International health experts believe Beijing’s narrow definition of COVID deaths does not reflect a true toll, and some predict more than a million deaths this year.

Reporting by Casey Hall in Shanghai, Julie Zhu in Hong Kong and Kevin Huang
Additional reporting by Jindong Zhang
Editing by Tony Munroe and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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Travel curbs rack up as COVID-hit China readies reopening

  • China to drop quarantine for overseas visitors on Sunday
  • Greece joins nations imposing travel curbs on China
  • Travel rush, holidays could inflame virus outbreak

SHANGHAI/BEIJING, Jan 6 (Reuters) – More countries around the world are demanding that visitors from China take COVID tests, days before it drops border controls and ushers in an eagerly awaited return to travel for a population that has been largely stuck at home for three years.

From Sunday, China will end the requirement for inbound travellers to quarantine, the latest dismantling of its “zero-COVID” regime that began last month following historic protests against a suffocating series of mass lockdowns.

But the abrupt changes have exposed many of China’s 1.4 billion population to the virus for the first time, triggering an infection wave that is overwhelming some hospitals, emptying pharmacy shelves of medication and causing international alarm.

Greece, Germany and Sweden on Thursday joined more than a dozen countries to demand COVID tests from Chinese travellers, as the World Health Organisation said China’s official virus data was under-reporting the true extent of its outbreak.

Chinese officials and state media have struck a defiant tone, defending the handling of the outbreak, playing down the severity of the surge and denouncing foreign travel requirements for its residents.

Foreign Ministry spokesperson Mao Ning warned on Friday of possible reciprocal measures after the European Union recommended pre-departure testing for Chinese passengers.

“The EU should listen more to … rational voices and treat China’s epidemic prevention and control objectively and fairly,” Mao told a regular media briefing in Beijing.

The Global Times, a nationalistic tabloid published by the official People’s Daily, said in an editorial that some Western media and politicians “would never be satisfied” no matter what steps China takes.

The global aviation industry, battered by years of pandemic curbs, has also been critical of the decisions to impose testing on travellers from China. China will still require pre-departure testing for inbound travellers after Jan. 8.

HOSPITALS PACKED

Some Chinese citizens think the reopening has been too hasty.

“They should have taken a series of actions before opening up … and at the very least ensure that the pharmacies were well stocked,” a 70-year-old man who gave his surname as Zhao told Reuters in Shanghai.

China reported five new COVID deaths in the mainland for Thursday, bringing its official virus death toll to 5,264, one of the lowest in the world.

But that appeared to be at odds with the reality on the ground where funeral parlours are overwhelmed and hospitals are packed with elderly patients on respirators. In Shanghai, more than 200 taxi drivers are driving ambulances to meet demand for emergency services, the Shanghai Morning Post reported.

International health experts believe Beijing’s narrow definition of COVID deaths does not reflect a true toll that could rise to more than a million fatalities this year.

Investors are optimistic that China’s reopening can eventually reinvigorate a $17-trillion economy suffering its lowest growth in nearly half a century.

Those hopes, alongside policy measures to help revive its troubled property sector, lifted China’s yuan on Friday.

Meanwhile, both China’s blue-chip CSI300 Index (.CSI300) and the Shanghai Composite Index (.SSEC) have gained more than 2% in the first trading week of the year.

“While the re-opening is likely to be a bumpy affair amid surging COVID-19 cases and increasingly stretched health systems, our economists expect growth momentum across Asia to gather steam, led by China,” Herald van der Linde, HSBC’s head of equity strategy, Asia Pacific, said in a note.

SOUTHEAST ASIA OPEN

With the big Lunar New Year holidays late this month, the mainland is also set to open the border with its special administrative region of Hong Kong on Sunday, for the first time in three years.

Ferry services between the city and the gambling hub of Macau will resume on the same day.

Hong Kong’s Cathay Pacific Airways (0293.HK) said on Thursday it would more than double flights to mainland China. Flights to and from China remain at a tiny fraction of pre-COVID levels.

The WHO has warned that the holiday, which starts on Jan. 21 and usually brings the biggest human migration on the planet as people head home from cities to visit families in small towns and villages, could spark another infection wave in the absence of higher vaccination rates and other precautions.

Authorities expect 2.1 billion passenger trips, by road, rail, water and air, over the holiday, double last year’s 1.05 billion journeys during the same period.

The transport ministry has urged people to be cautious to minimise the risk of infection for elderly relatives, pregnant women and infants.

One region poised to be a major beneficiary of China’s opening is Southeast Asia, where countries have not demanded that Chinese visitors take COVID tests.

Except for airline wastewater testing by Malaysia and Thailand for the virus, the region’s 11 nations will treat Chinese travellers like any others.

As many as 76% of Chinese travel agencies ranked Southeast Asia as the top destination when outbound travel resumed, according to a recent survey by trade show ITB China.

Many people in China have taken to social media to announce their travel plans but some remain wary.

“You want to see the world, but the world might not want to see you,” wrote one WeChat user from Tianjin city.

Reporting by Brenda Goh in Shanghai, Bernard Orr, Eduardo Baptista, Martin Pollard and Liz Lee in Beijing, Farah Master in Hong Kong, and Xinghui Kok in Singapore; Writing by John Geddie and Greg Torode; Editing by Robert Birsel and Andrew Heavens

Our Standards: The Thomson Reuters Trust Principles.

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China defends its COVID response after WHO, Biden concerns

  • China says outbreak is controllable
  • WHO says China under-reporting hospital admissions, deaths
  • Official data at odds with packed hospitals, crematoriums
  • Asian shares up on hopes China reopening stimulates growth

BEIJING/SHANGHAI, Jan 5 (Reuters) – China defended on Thursday its handling of its raging COVID-19 outbreak after U.S. President Joe Biden voiced concern and the World Health Organisation (WHO) said Beijing was under-reporting virus deaths.

The WHO’s emergencies director, Mike Ryan, said on Wednesday in some of the U.N. health agency’s most critical remarks to date, that Chinese officials were under-representing data on several fronts.

China scrapped its stringent COVID controls last month after protests against them, abandoning a policy that had shielded its 1.4 billion population from the virus for three years.

China’s foreign ministry spokesperson Mao Ning told a regular press briefing in Beijing that China had transparently and quickly shared COVID data with the WHO.

Mao said that China’s “epidemic situation is controllable” and that it hoped the WHO would “uphold a scientific, objective, and impartial position”.

“Facts have proved that China has always, in accordance with the principles of legality, timeliness, openness and transparency, maintained close communication and shared relevant information and data with the WHO in a timely manner,” Mao said.

China reported one new COVID death in the mainland for Wednesday, compared with five a day earlier, bringing its official death toll to 5,259.

Ryan said on Wednesday the numbers China was publishing under-represented hospital admissions, intensive care unit patients and deaths.

Hours later, U.S. President Joe Biden also raised concern about China’s handling of a COVID outbreak that is filling hospitals and overwhelming some funeral homes.

“They’re very sensitive … when we suggest they haven’t been that forthcoming,” Biden told reporters while on a visit to Kentucky.

The French health minister voiced similar fears while German Health Minister Karl Lauterbach voiced concern about a new COVID subvariant linked to growing hospitalisations in the northeastern United States.

CROWDED HOSPITAL

The United States is one of more than a dozen countries that have imposed restrictions on travellers from China.

China has criticised such border controls as unreasonable and unscientific and the government said on Thursday that its border with its special administrative region of Hong Kong would also reopen on Sunday, for the first time in three years.

Millions of people will be travelling within China later this month for the Lunar New Year holiday.

China’s government has played down the severity of the situation in recent days and the state-run Global Times said in an article on Wednesday that COVID had peaked in several cities including the capital, Beijing, citing interviews with doctors.

But at a hospital in Shanghai’s suburban Qingpu district, patients on beds lined the corridors of the emergency treatment area and main lobby on Thursday, most of them elderly and several breathing with oxygen tanks, a Reuters witness said.

A notice on a board advised that patients would have to wait an average of five hours to be seen.

Staff declared one elderly patient dead and pinned a note to the body on the floor stating the cause of death “respiratory failure”.

Police patrolled outside a nearby crematorium, where a stream of mourners carried wreathes and waited to collect the ashes of loved ones.

DATA GAPS

With one of the lowest official COVID death tolls in the world, China has been routinely accused of under-reporting for political reasons.

In December last year, the WHO said it had received no data from China on new COVID hospitalisations since Beijing lifted its zero-COVID policy.

In its latest weekly report, the WHO said China reported 218,019 new weekly COVID cases as of Jan. 1, adding that gaps in data might be due to authorities simply struggling to tally cases.

The methods for counting COVID deaths have varied across countries since the pandemic first erupted in the central Chinese city of Wuhan in late 2019.

Chinese health officials have said only deaths caused by pneumonia and respiratory failure in patients who had the virus are classified as COVID deaths.

But disease experts outside China have said its approach would miss several other widely recognised types of fatal COVID complications, from blood clots to heart attacks as well as sepsis and kidney failure.

International health experts predict at least 1 million COVID-related deaths in China this year without urgent action. British-based health data firm Airfinity has estimated about 9,000 people in China are probably dying each day from COVID.

Surging COVID infections are hurting demand in China’s $17 trillion economy, with a private-sector survey on Thursday showing services activity shrank in December.

But investors remain optimistic that China’s dismantling of COVID controls will eventually help revive growth that has slid to its lowest rate in nearly half a century. Those hopes were seen lifting Asian equity markets (.MIAPJ0000PUS) on Thursday.

“China reopening has a big impact … worldwide,” said Joanne Goh, an investment strategist at DBS Bank in Singapore, adding the move would spur tourism and consumption and ease supply-chain crunches seen last year.

(This story has been refiled to correct punctuation in headline.)

Reporting by Liz Lee, Eduardo Baptista and Bernard Orr in Beijing, Brenda Goh in Shanghai, Tom Westbrook in Singapore, Steve Holland in Hebron, Kentucky; Writing by John Geddie and Greg Torode; Editing by Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

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GM reclaims U.S. auto sales crown from Toyota

Jan 4 (Reuters) – General Motors Co (GM.N) reclaimed the top spot in U.S. auto sales from rival Toyota Motor Corp (7203.T) in 2022 as it was able to better meet strong demand for cars and trucks despite industry-wide supply disruptions.

Shares of GM rose 2.7% in afternoon trade on Wednesday to $34.75, after the company posted a 2.5% rise in 2022 sales to 2,274,088 vehicles, higher than Toyota’s 2,108,458 units, in a closely watched race.

Inventory shortages stemming from surging material costs and a persistent chip crunch had hobbled production at many automakers, keeping car and truck prices elevated. Asian brands were hit hardest.

“Toyota is still among the tightest when it comes to inventory,” Cox Automotive senior economist Charlie Chesbrough said.

The Japanese automaker cut its full-year production target in November. Sales of its SUVs, a key segment, fell 8.6% in 2022, data on Wednesday showed.

However, Toyota executives said there were some positive signs emerging, and the rate of inventory buildup was slow but steady.

“We’re optimistic our inventory levels will continue to improve in the first quarter and for the remainder of the year,” said Andrew Gillel, senior vice president of automotive operations at Toyota.

Reuters Graphics

Other brands such as Hyundai Motor America, Kia Motors America, Mazda North American Operations and American Honda all posted a drop in sales on Wednesday.

Industry-wide, last year’s U.S. auto sales are forecast to be about 13.9 million units, down 8% from 2021 and 20% from the peak in 2016, according to industry consultant Cox Automotive.

Some analysts are also concerned that price hikes by automakers to blunt inflationary pressures and rising interest rates will take a toll on new vehicle sales in 2023.

Affordability is a “very real issue,” Toyota executive David Christ said. Nonetheless, the company expects demand to be robust this year.

Automakers will need to begin incentivising buyers, a trend that was paused during the pandemic, automotive marketplace TrueCar said.

Reporting by Aishwarya Nair, Nathan Gomes and Abhijith Ganapavaram in Bengaluru; Editing by Shilpi Majumdar and Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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China pledges ‘final victory’ over COVID as outbreak raises global alarm

  • Virus spreading fast in China after policy U-turn
  • Japan latest country requiring tests from China arrivals
  • EU meeting to discuss China travel policy
  • WHO seeking data from Chinese scientists

BEIJING, Jan 4 (Reuters) – Global health officials tried to determine the facts of China’s raging COVID-19 outbreak and how to prevent a further spread as the government’s mouthpiece newspaper on Wednesday rallied citizens for a “final victory” over the virus.

China’s axing of its stringent virus curbs last month has unleashed COVID on a 1.4 billion population that has little natural immunity having been shielded from the virus since it emerged in its Wuhan city three years ago.

Funeral homes have reported a spike in demand for their services, hospitals are packed with patients, and international health experts predict at least one million deaths in China this year.

But officially, China has reported a small number of COVID deaths since the policy U-turn and has played down concerns about a disease that it was previously at pains to eradicate through mass lockdowns even as the rest of the world opened up.

“China and the Chinese people will surely win the final victory against the epidemic,” Chinese Communist Party mouthpiece the People’s Daily said in an editorial, rebutting criticism of its tough anti-virus regime that triggered historic protests late last year.

As it now dismantles those restrictions, China has been particularly critical of decisions by some countries to impose a requirement for a COVID test on its citizens, saying they are unreasonable and lack scientific basis.

Japan became the latest country to mandate pre-departure COVID testing for travellers from China, following similar measures by the United States, Britain, South Korea and others.

Health officials from the 27-member European Union are due to meet on Wednesday to discuss a coordinated response to China travel. Most European Union countries favour pre-departure COVID testing for visitors from China.

China, which has been largely shut off from the world since the pandemic began in late 2019, will stop requiring inbound travellers to quarantine from Jan. 8. But it will still demand that arriving passengers get tested before they begin their journeys.

DOUBT ON DATA

Meanwhile, World Health Organization officials met Chinese scientists on Tuesday amid concern over the accuracy of China’s data on the spread and evolution of its outbreak.

The U.N. agency had invited the scientists to present detailed data on viral sequencing and to share data on hospitalizations, deaths and vaccinations.

The WHO would release information about the talks later, probably at a Wednesday briefing, its spokesperson said. The spokesperson earlier said the agency expected a “detailed discussion” about circulating variants in China, and globally.

Last month, Reuters reported that the WHO had not received data from China on new COVID hospitalisations since Beijing’s policy shift, prompting some health experts to question whether it might be concealing the extent of its outbreak.

China reported five new COVID-19 deaths for Tuesday, compared with three a day earlier, bringing the official death toll to 5,258, very low by global standards.

But the toll is widely believed to be much higher. British-based health data firm Airfinity has said about 9,000 people in China are probably dying each day from COVID.

There were chaotic scenes at Shanghai’s Zhongshan hospital where patients, many of them elderly, jostled for space on Tuesday in packed halls between makeshift beds where people used oxygen ventilators and got intravenous drips.

With COVID disruptions slowing China’s $17 trillion economy to its lowest growth in nearly half a century, investors are now hoping policymakers will intervene to counter the slide.

China’s yuan hovered at a four-month high against the dollar on Wednesday, after its finance minister pledged to step up fiscal expansion this year, days after the central bank said it would implement more policy support for the economy.

BOOKING BOOM

Despite some countries imposing restrictions on Chinese visitors, interest in outbound travel from the world’s most populous country is cranking up, state media reported.

Bookings for international flights from China have risen by 145% year-on-year in recent days, the government-run China Daily newspaper reported, citing data from travel platform Trip.com.

The number of international flights to and from China is still a fraction of pre-COVID levels. The government has said it will increase flights and make it easier for people to travel abroad.

Thailand, a major destination for Chinese tourists, is expecting at least five million Chinese arrivals this year, its tourism authority said on Tuesday.

More than 11 million Chinese tourists visited Thailand in 2019, nearly a third of its total visitors.

But there are already signs that an increase in travel from China could pose problems abroad.

South Korea, which began testing travellers from China for COVID on Monday, said more than a fifth of the test results were positive.

Authorities there were hunting on Wednesday for one Chinese national who tested positive but went missing while awaiting quarantine. The person, who was not identified, could face up to a year in prison or fines of 10 million won ($7,840).

Reporting by Bernard Orr and Liz Lee in Beijing and Brenda Goh in Shanghai, Hyonhee Shin in Seoul and Kantaro Komiya in Tokyo; Writing by John Geddie; Editing by Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

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