Xi warned officials that efforts to stop virus could hurt economy

Chinese President Xi Jinping warned top officials last week that efforts to contain the new coronavirus had gone too far, threatening the country’s economy, sources told Reuters, days before Beijing rolled out measures to soften the blow.

With growth at its slowest in nearly three decades, China’s leaders seem eager to strike a balance between protecting an already-slowing economy and stamping out an epidemic that has killed more than 1,000 people and infected more than 40,000.
After reviewing reports on the outbreak from the National Development and Reform Commission (NDRC) and other economic departments, Xi told local officials during a Feb 3 meeting of the Politburo’s Standing Committee that some of the actions taken to contain the virus are harming the economy, said two people familiar with the meeting, who declined to be named because of the sensitivity of the matter.
He urged them to refrain from “more restrictive measures”, the two people said.
Local authorities outside Wuhan – where the virus is thought to have first taken hold – have shut down schools and factories, sealed off roads and railways, banned public events and even locked down residential compounds. Xi said some of those steps have not been practical and have sown fear among the public, they said.
China’s state council information office did not immediately respond to requests for comment.

The official Xinhua News Agency, reporting on the Politburo meeting last Monday, called the coronavirus outbreak “a major test of China’s system and capacity for governance.” It added, without details, that “party committees and governments of all levels were urged to achieve the targets of economic and social development this year.”
Since the meeting, China’s central bank has vowed to step up support for the economy and prepared policy tools to offset the damage. The NDRC said at a weekend briefing that it was urging companies and factories to resume work, especially in “key industries” such as food and pharmaceuticals.
“In the context of the epidemic and the downward pressure on the economy, it is more important to maintain economic growth,” Pan Gongsheng, vice-governor of China’s central bank, said on Friday.
On Monday, Zhejiang province, an economic powerhouse in eastern China, ordered local authorities not to overreact by restricting everyday movement or shutting down “shops of chain stores and convenience stores that sell daily necessities such as vegetables, cooking oil as well as meat, eggs and dairy products,” according to a government release.
China has unveiled new tax policies as it tries to reduce the burden on industries hit heavily by the epidemic.
Reuters reported this month that policymakers in China are preparing measures, including more fiscal spending and interest rate cuts, amid expectations the outbreak will devastate first-quarter growth.

Many in China returned to work on Monday after the Lunar New Year holiday was effectively extended for about 10 days, but morning commutes were far less crowded than usual and numerous factories remained shut.
The ruling Communist Party’s propaganda department last week ordered state media to focus on “economic recovery”, according to a person with direct knowledge of the order, who declined to be named because of the sensitivity of the situation.
China’s official media has been trying to project calm. In a Monday editorial, the official People’s Daily urged the public to deal with the epidemic with a “positive mood”.
https://www.reuters.com/article/us-china-health-xi-economy/xi-warned-officials-that-efforts-to-stop-virus-could-hurt-economy-sources-idUSKBN2050JL

China’s top virus expert says outbreak may peak this month

China’s coronavirus epidemic may peak in February and then plateau before easing, the government’s top medical adviser on the outbreak said.
In an exclusive interview with Reuters, Zhong Nanshan, a leading epidemiologist who won international fame for his role in combating the SARS epidemic in 2003, said the situation in some provinces was already improving, with the number of new cases declining.
Zhong, who had previously predicted an earlier peak, said the forecast was based on modeling and developments in recent days, as well as government action.
“So, we suppose maybe, the peak time may be reached at the, maybe middle or late this month, February … and then keep a little bit plateau or something like that and, then going down,” he said.

He said containment measures in the city of Wuhan, the epicenter of the outbreak, were necessary, and the country should also permanently ban trade in wildlife.
It also needed to improve its disease control mechanisms and even help set up a global early warning system for contagious diseases.
https://www.reuters.com/article/us-china-health-doctor-exclusive/exclusive-chinas-top-virus-expert-says-outbreak-may-peak-this-month-idUSKBN2050VF

China launches coronavirus ‘close contact detector’ app

China has launched an app that allows people to check whether they have been at risk of catching the coronavirus.

The ‘close contact detector’ tells users if they have been near a person who has been confirmed or suspected of having the virus.
People identified as being at risk are advised to stay at home and inform local health authorities.
The technology shines a light on the Chinese government’s close surveillance of its population.
To make an inquiry users scan a Quick Response (QR) code on their smartphones using apps like the payment service Alipay or social media platform WeChat.
Once the new app is registered with a phone number, users are asked to enter their name and ID number. Every registered phone number can then be used to check the status of up to three ID numbers.

The app was jointly developed by government departments and the China Electronics Technology Group Corporation and supported by data from health and transport authorities, according to the state-run news agency Xinhua.
It is widely known that the Chinese government conducts high levels of surveillance on its citizens but experts in the field suggest, in this case at least, it will not be seen as controversial within the country.

 

Hong Kong-based technology lawyer at the law firm DLA Piper Carolyn Bigg told the BBC: “In China, and across Asia, data is not seen as something to be locked down, it’s something that can be used. Provided it’s done in a transparent way, with consent where needed.”
“From a Chinese perspective this is a really useful service for people… It’s a really powerful tool that really shows the power of data being used for good,” she added.
The Chinese government defines ‘close contact’ as coming near to, with no effective protection, confirmed, suspected or mild cases of the coronavirus while the person was ill, even if they were showing no symptoms at the time.
‘Close contact’ covers:

• People who work closely together, share a classroom, or live in the same home
• Medical staff, family members or other people who have been in close contact with patients and their caregivers
• Passengers and crew who have been on planes, trains and other forms of transport with an infected person

For example, all air passengers within three rows of an infected person, as well as cabin staff, are seen as being in close contact, while other passengers would be recorded as having general contact.
When it comes to air-conditioned trains, all passengers and crew members in the same carriage are regarded as being in close contact.
https://www.bbc.com/news/technology-51439401

Firm backed by Italy’s Gruppo San Donato could bid for NMC Health

GKSD Investment Holding confirmed on Tuesday that it could make an offer to buy NMC Health (NMC.L), a day after the London-listed healthcare group revealed approaches from two private equity groups.
GKSD, an investment vehicle backed by sponsors of Italy’s private hospital chain Gruppo San Donato (GSD), said it was in the preliminary stages of considering an offer for NMC.
GKSD is being advised by GK Investment, which made the approach to NMC on its behalf, the firm said. Rothschild & Co and Goldman Sachs are also acting as advisers.

GSD, founded here in 1957, operates research hospitals, general hospitals and clinics in 44 locations across Italy and calls itself the country’s largest private hospital group.
The announcement sent shares in UAE-based NMC as much as 10% lower before they recouped some losses to trade down 1% at 914 pence as of 0839 GMT.
The company’s shares closed 32% higher on Monday after it said KKR (KKR.N) and GK had approached it, giving the stock a boost after falling sharply following queries by Muddy Waters last year over its financial statements.

U.S.-based KKR had declined to comment on NMC’s statement on Monday.
Lugano, Switzerland-based GK, focuses on investments primarily in Africa and the Middle East across multiple sectors. Historically, it has invested in oil service assets in Italy and the Middle East, its website www.gkinvest.com/en shows.
Reuters reported here last year that NMC was also the target of two groups, one backed by China’s Fosun, looking to buy a 40% stake in it.
https://www.reuters.com/article/us-nmc-health-offer/firm-backed-by-italys-gruppo-san-donato-could-make-offer-for-nmc-idUSKBN2050O2

Countries rush to build diagnostic capacity as coronavirus spreads

A week ago, only two laboratories in Africa could diagnose the novel coronavirus that originated in China and is rapidly spreading around the world. As of Sunday, the World Health Organization (WHO) expected every nation in Africa to be able to diagnose the disease.

The rush reflects a global push for diagnostic capabilities, particularly in developing countries, in hopes of averting a global pandemic. But it is being slowed by a desperate need for virus samples necessary to validate the tests.
“Without vital diagnostic capacity, countries are in the dark as to how far and wide the virus has spread and who has coronavirus or another disease with similar symptoms,” WHO chief Tedros Adhanom Ghebreyesus told a news conference in Geneva on Monday.
As of early Monday, there had been 40,235 confirmed cases reported in China and 909 deaths, as well as 319 cases in 24 other countries, including one death.
Most of the testing is being done by public health laboratories. But several companies including Thermo Fisher Scientific Inc, GenScript Biotech Corp and Co-Diagnostics Inc have developed tests and are taking steps to get them validated for clinical use.
Roche is distributing coronavirus tests developed by Tib Molbiol of Berlin for research use on some of its instruments while developing a test of its own. Abbott Laboratories also is working on a test.
WHO has activated a network of 15 referral laboratories that can support national efforts in confirming new cases, and has identified 168 labs globally with the technology to diagnose the virus.
Technicians must be trained to run the tests locally to avoid delays associated with having to send them to centralized labs.
On Tuesday, WHO is convening a two-day meeting of hundreds of researchers and manufacturers to address the outbreak.

WORKLOAD ON LABS IS ‘EXTREME’

Researchers are also working to develop antibody tests that can tell whether someone has been exposed to the virus. They could help answer how broadly this virus has spread, and whether there are milder cases not being detected, Dr. Mike Ryan, head of the WHO emergency program, told reporters.
China appears to have adequate stock of the materials needed to perform diagnostic tests, but there is a limited number of trained technicians who can run them. “The workload on those labs is extreme,” Ryan said.
Outside of China, manufacturers are quickly developing tests based on the genetic code of the virus. Those tests still need to be validated with actual virus samples, for which access has been challenging.
Live isolation of the virus allows a huge advance in diagnostics and potential advances in therapeutics and vaccine development, Ryan said.
GenScript, which has offices in New Jersey and Nanjing, China, has developed a test available to researchers. It cannot be used as a diagnostic until it has been tested in hundreds of virus samples.
“In China, we couldn’t get to the samples directly because we don’t have a lab that can handle the virus,” said Hong Li, a GenScript scientist.
The company has sent its test kits to Chinese health officials to assess their validity. “Because other companies in China are also doing that, we don’t know when it will be our turn,” said Eric Wang, GenScript’s head of marketing.
Utah-based Co-Diagnostics on Monday said it has started shipping its test, which is available for research purposes, to clients. Chief Scientific Officer Brent Satterfield said last week that the company has been struggling to find clinical virus samples to validate the test for use as a diagnostic.
Thermo Fisher developed its tests based on the genetic code of the virus, and ran computer models to validate it.

The company has been providing its test to countries and health ministries with access to virus samples, said Thermo Fisher executive Joshua Trotta. “They will evaluate our kits and make a determination of what is the best test to deploy.”
Meanwhile, Thermo Fisher is scaling up production as countries prepare for more cases. Demand is “growing every day,” Trotta said.
https://www.reuters.com/article/us-china-health-diagnostics-focus/countries-rush-to-build-diagnostic-capacity-as-coronavirus-spreads-idUSKBN2042DV

Congress Proposes ‘Misdirected, Destructive’ Surprise Billing Legislation

The House Ways and Means Committee is trying to pass the Consumer Protections Against Surprise Medical Bills Act, which it claims will “better shield patients from bankrupting surprise medical bills.” It states that its “approach recognizes the importance of the private market dynamics between insurance plans and providers.”
“But there are no private market dynamics between physicians and plans or between patients and plans,” states Jane M. Orient, M.D., executive director of the Association of American Physicians and Surgeons (AAPS). “Physicians are presented with a take-it-or-leave-it contract, and patients with a take-it-or-leave-it plan.”
The provisions in the Committee’s proposal that say they protect patient choice  only refer to their choice of “participating providers.”
“Doctors may reject the contract because of onerous administrative demands, restrictions that prevent providing the best care, or pay rates that don’t even cover costs,” Dr. Orient explained. “But with this bill, the federal government would force doctors to accept terms of contracts they have not signed.”
“People who have paid a huge premium for their insurance plan—maybe even more than their mortgage payment—are understandably outraged when they learn that it does not cover what they were led to expect,” Dr. Orient states. “They are not informed that their plan’s narrow network may mean an ‘in-network’ facility cannot provide needed services without out-of-network physicians, who bill independently.”
“Corporations, with government back-up, will effectively dictate what patients can receive,” she noted. “If people can only pay for a Yugo or a Trabant, decent cars will disappear.”
Physician compensation is only about 8 percent of total spending. “Cutting doctors’ pay would not in itself make much difference,” Dr. Orient pointed out. “But if insurers can drive them out of business or keep them from ordering expensive care, the insurance industry will become even more profitable.”
“There is no balance bill for treatment you did not get. But rationed care might not be your preference,” she concluded.
“What we really need are honest price signals (‘transparency’) and free choice of care and of a wide variety of clearly explained insurance products.”
The Association of American Physicians and Surgeons (AAPS) is a national organization representing physicians in all specialties since 1943.

Congress Proposes Misdirected, Destructive “Surprise Billing” Legislation

Singapore expects 25-30% drop in visitors this year due to virus

Singapore expects visitor numbers to drop 25-30% this year due to the new coronavirus outbreak, with a significant decline in Chinese travel to the city state expected to extend to other key markets, its tourism board said on Tuesday.
The city-state has reported 45 cases of the virus, which has claimed over 1000 lives in China, while some countries such as Kuwait and Qatar have already started advising their citizens against travel to the Southeast Asian business hub.
Visitor arrivals rose 3.3% to 19.1 million visitors in 2019, with receipts up 0.5% to S$27.1 billion ($19.52 billion).
https://www.reuters.com/article/us-singapore-economy-tourism/singapore-expects-25-30-drop-in-visitors-this-year-due-to-virus-idUSKBN205075