China Business Digest: Global Cases Top 2 Million; Asian Nations Defend WHO After Trump Vows to Withhold Funding

There are now more than 2 million people in the world who contracted the new coronavirus, doubling the total in only 12 days. U.S. President Donald Trump wants to temporarily halt American funding of the World Health Organization, while China and other nations including Japan and South Korea are coming to the agency’s defense. Also, Apple launched its first low-cost smartphone in four years.

— By Mo Yelin (yelinmo@caixin.com) and Han Wei (weihan@caixin.com)

** ON THE CORONAVIRUS

• More than 2 million people infected worldwide

The Covid-19 pandemic passed another grim milestone Wednesday as total infections exceeded 2 million worldwide. It took only 12 days for the global caseload to double, according to data compiled by Johns Hopkins University.

The actual infection figure is likely to be even higher because of limited testing in most countries. The virus has spread across 185 countries and regions, killing nearly 130,000 people.

• Trump Halts U.S. Funding for WHO

U.S. President Donald Trump on Tuesday asked (link in Chinese) his administration to temporarily halt funding to the World Health Organization. He criticized the WHO’s previous opposition to his administration’s restrictions on travelers from China and other nations, calling the health body’s position “disastrous.”

• New York orders face coverings in public areas

New York Gov. Andrew Cuomo Wednesday ordered everyone to wear a face mask or some kind of covering while in public when social-distancing is not possible. Cuomo said the executive order will take effect at the end of the week. No fine will be imposed for noncompliance at first but maybe in the future. It is the first mandatory order issued by a state after the CDC recommended that Americans wear masks in public.

• Three More Traditional Chinese Herbal Remedies Approved to Treat Covid-19

The three remedies were produced by two Shenzhen-listed companies — Shijiazhuang Yiling Pharmaceutical and Tianjin Chase Sun Pharmaceutical. Yiling said (link in Chinese) Tuesday that its two herbal-based medicines had been approved by China’s drug regulator for treatment of Covid-19 induced symptoms. On the same day, Chase Sun announced that one of its drugs had been similarly approved.

• Countries Charter Flights to China to Bring Back Protective Gear

Multiple countries have sent chartered flights to China to fetch their orders of personal protective equipment, including masks and protective suits, CCTV reported (link in Chinese).

• Fewer Than 3,000 Travelers Are Now Coming to China Each Day

Fewer than 20 international flights have been landing in China since late last month, when the government implemented new rules to prevent imported cases amid the Covid-19 pandemic, the Xinhua News Agency reported (link in Chinese). There have been 2,000 to 3,000 daily inbound travelers during the period.

Other virus news

• Private international schools in China are facing refund requests from parents dissatisfied with online learning after closures due to the pandemic. At least four schools in Beijing have faced refund disputes. In one, the Sanlitun campus of the British School of Beijing told parents they must pay as much as 70,000 yuan ($10,000) in tuition even though only online classes were being provided.

• On Tuesday, the Chinese mainland reported 46 new confirmed cases of Covid-19 (link in Chinese), including 36 imported cases, and one new death, official data showed.

• As of Tuesday Beijing time, global infections had surpassed 1.98 million with over 126,000 deaths, according to data compiled by Johns Hopkins University.

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Caixin’s coverage of the new coronavirus

** TOP STORIES OF THE DAY

• Apple unveils new budget iPhone

Apple Inc. Wednesday debuted the new iPhone SE, its first low-cost smartphone model in four years, in hopes of boosting sales. The new model costs $399, several hundred dollars cheaper than the flagship iPhone 11.

• China Cuts Medium-Term Borrowing Rate to Record Low

The People’s Bank of China said (link in Chinese) it would lower the one-year medium-term lending facility rate by 0.2 percentage points to 2.95%, its lowest since the rate was introduced in 2014.

• Chinese Airlines Take Immense First-Quarter Losses

Chinese airlines reported a combined loss of 33.62 billion yuan (link in Chinese) in the first quarter, as demand collapsed amid the pandemic, a spokesperson for the Civil Aviation Administration of China said Wednesday.

• More Cost Cutting in the Home-Appliance Industry

The coronavirus pandemic is creating a cash crunch for home-appliance makers. After Hisense began laying off thousands of workers this week, larger rival Midea announced plans to withhold up to 30% of some of its high-ranking staff’s salaries, Caixin has learned.

The whole industry is suffering. For the first quarter, Hisense and rival Gree have estimated that their profits will fall (link in Chinese) by more than 70%, while two other smaller companies – Changhong Meiling and Konka – forecast losses.

• Hacking in Focus After Post Offers Data on 1 Million Financial Customer

An online post raised eyebrows after it claimed to offer data for 1 million customers of several Chinese banks and insurance companies, including Bank of Shanghai, Industrial Bank, Shanghai Pudong Development Bank, China Merchants Bank and Ping An Insurance. At least one bank involved said the records were not authentic.

• Europe’s Not Eager to Leave China

As concerns have risen that foreign companies could move their supply chains for medical equipment and other products out of China, European businesspeople in the country told Caixin that European enterprises are not that enthusiastic about moving their supply chains back home.

** OTHER STORIES MAKING HEADLINES

• During the first quarter, Chinese developers raised a combined 377 billion yuan from domestic and overseas bond sales, up 4% from a year ago and the highest total since 2015.

• The State Grid Corp. of China has pledged 2.7 billion yuan this year to the construction of battery charging stations for electric vehicles, following a government push to support high-tech infrastructure.

• Japanese high-tech investor SoftBank expects to report a record 1.35 trillion yen ($12.5 billion) operating loss for the fiscal year that ended in March.

• During the first quarter, consumers around the world spent over $16.7 billion (link in Chinese) on mobile gaming, a 5% increase from the previous quarter, according to data from analytics firm App Annie.

• Sohu is set to take the Nasdaq-listed gaming firm Changyou private.

** AND FINALLY

It seems like every day comes with a new prediction that this once-in-a-century pandemic will forever change consumer culture. However, this hasn’t been the case for Chinese fans of the French luxury brand Hermes. On April 11, consumers flooded into one of its recently reopened stores in the southern Chinese metropolis of Guangzhou, where they propelled sales to a single-day record of $2.7 million, the trade journal Women’s Wear Daily reported.

** THE WEEK AHEAD

April 17: China Q1 GDP

Contact reporter Mo Yelin (yelinmo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)

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