Is Shanghai’s Covid-19 Disaster China’s Future?
By Nathaniel Taplin, April 13, 2022, WSJ
After largely keeping out Covid-19 for two years, China’s
largest city is battling an outbreak numbering over 100,000
cases. And while the Shanghai government has yet to acknowledge
any Covid fatalities, spiking deaths at some elderly care
facilities suggest that the numbers are there, whether
officially acknowledged or not.
Is this a sign of things to come in the rest of China?
Not necessarily, but if the government doesn’t move quickly
to vaccinate and boost its elderly, and start spending much
more heavily on hospital capacity, then the human and economic
consequences could be disastrous.
Events in Hong Kong and Shanghai have demonstrated that a
“zero Covid” strategy can look very effective for a long time—
until suddenly it isn’t, either because a more infectious variant
changes the game or because success itself breeds overconfidence.
To be sure, mainland China has tools that Hong Kong lacks. These
include the network of neighborhood party committees that have
formed the backbone of grass-roots monitoring and enforcement,
the state’s greater coercive and surveillance capabilities writ
large, and the ability to mobilize enormous manpower in a pinch
to build hospital space, conduct testing, or deliver food. The
political stakes on the mainland, where Communist Party General
Secretary Xi Jinping is poised to bid for an unprecedented third
term later this year, are also arguably even higher than in Hong Kong.
Shanghai’s struggle to deliver food to residents and staff
medical facilities shows that these advantages can crumble quickly,
however, if Omicron’s exponential growth isn’t halted in its early stages. At the very least China will pay an enormous economic price
to bring the current outbreak under control. Cities under complete
lockdown or very harsh control measures as of early April accounted
for about 13% of China’s economy, according to Gavekal Dragonomics. China’s target of “around 5.5%” growth for 2022—which looked ambitious
before the recent outbreak—now looks implausible.
More important, even assuming this outbreak is controlled, the
idea that China can achieve a “soft exit” from “zero Covid” at
some future date without large-scale fatalities is seeming
increasingly questionable.
China invested heavily in healthcare for the past several years—
to the tune of 30% growth in 2020 and 25% last year, both far
faster than overall fixed asset investment, which only grew in
the single digits both years. But in some important respects,
that rapid investment is coming from a very low base. China had
only 4.4 intensive care beds per 100,000 residents in 2021,
according to Morgan Stanley—compared with around 11 in South
Korea and the U.K., and 26 in the U.S.
Mainland China also has some of the same weaknesses that led to
Hong Kong’s disastrous Omicron outbreak. As in Hong Kong, and for
reasons that aren’t entirely clear, a large proportion of the
elderly remain unvaccinated or only partially vaccinated—about
half of the population over 80.
In Hong Kong, where government health expenditures are slightly
higher than China’s as a percentage of gross domestic product,
hospitals were easily overwhelmed by large numbers of elderly
patients once Omicron broke through. Hong Kong also has 7.1 ICU
beds per 100,000 residents, according to a February article in
the Hong Kong Medical Journal—significantly more on a per capita
basis than China. General government expenditure on healthcare
in China amounted to less than 3% of GDP in 2019, according to
the World Bank, below the upper-middle-income average of 3.3%
and well below the nearly 8% typical of developed countries.
China has also declined to approve foreign mRNA-based Covid-19
vaccines, such as those developed by Pfizer and Moderna that
appear to offer superior protection against the virus compared
with vaccines developed using older technologies—including China’s
own. The rationale has apparently been to create room for Chinese
businesses to develop their own mRNA vaccines, a venture that could eventually be successful. By buying time for China’s domestic
vaccine entrepreneurs, however, Beijing may have squandered time
to get its most vulnerable vaccinated with the best protection available.
For now, China’s outbreak appears to have only reached truly
dangerous levels in Shanghai and the northern province of Jilin.
But the days of “zero Covid”—so successful at preventing deaths
and economic damage early in the pandemic—are now clearly numbered. Omicron is too contagious and the economic cost of containing it is unsustainable. If the Chinese government doesn’t use its remaining
time to aggressively vaccinate and boost its vulnerable with the
best protection available, build up intensive-care capacity, and
motivate the populace to protect itself by articulating a clear
intention to eventually move toward living with the virus, many
more situations like Shanghai and Hong Kong might become inevitable.
https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483
Is Shanghai’s Covid-19 Disaster China’s Future?
By Nathaniel Taplin, April 13, 2022, WSJ
After largely keeping out Covid-19 for two years, China’s
largest city is battling an outbreak numbering over 100,000
cases. And while the Shanghai government has yet to acknowledge
any Covid fatalities, spiking deaths at some elderly care
facilities suggest that the numbers are there, whether
officially acknowledged or not.
Is this a sign of things to come in the rest of China?
Not necessarily, but if the government doesn’t move quickly
to vaccinate and boost its elderly, and start spending much
more heavily on hospital capacity, then the human and economic
consequences could be disastrous.
Events in Hong Kong and Shanghai have demonstrated that a
“zero Covid” strategy can look very effective for a long time—
until suddenly it isn’t, either because a more infectious variant
changes the game or because success itself breeds overconfidence.
To be sure, mainland China has tools that Hong Kong lacks. These
include the network of neighborhood party committees that have
formed the backbone of grass-roots monitoring and enforcement,
the state’s greater coercive and surveillance capabilities writ
large, and the ability to mobilize enormous manpower in a pinch
to build hospital space, conduct testing, or deliver food. The
political stakes on the mainland, where Communist Party General
Secretary Xi Jinping is poised to bid for an unprecedented third
term later this year, are also arguably even higher than in Hong Kong.
Shanghai’s struggle to deliver food to residents and staff
medical facilities shows that these advantages can crumble quickly,
however, if Omicron’s exponential growth isn’t halted in its early stages. At the very least China will pay an enormous economic price
to bring the current outbreak under control. Cities under complete
lockdown or very harsh control measures as of early April accounted
for about 13% of China’s economy, according to Gavekal Dragonomics. China’s target of “around 5.5%” growth for 2022—which looked ambitious
before the recent outbreak—now looks implausible.
More important, even assuming this outbreak is controlled, the
idea that China can achieve a “soft exit” from “zero Covid” at
some future date without large-scale fatalities is seeming
increasingly questionable.
China invested heavily in healthcare for the past several years—
to the tune of 30% growth in 2020 and 25% last year, both far
faster than overall fixed asset investment, which only grew in
the single digits both years. But in some important respects,
that rapid investment is coming from a very low base. China had
only 4.4 intensive care beds per 100,000 residents in 2021,
according to Morgan Stanley—compared with around 11 in South
Korea and the U.K., and 26 in the U.S.
Mainland China also has some of the same weaknesses that led to
Hong Kong’s disastrous Omicron outbreak. As in Hong Kong, and for
reasons that aren’t entirely clear, a large proportion of the
elderly remain unvaccinated or only partially vaccinated—about
half of the population over 80.
In Hong Kong, where government health expenditures are slightly
higher than China’s as a percentage of gross domestic product,
hospitals were easily overwhelmed by large numbers of elderly
patients once Omicron broke through. Hong Kong also has 7.1 ICU
beds per 100,000 residents, according to a February article in
the Hong Kong Medical Journal—significantly more on a per capita
basis than China. General government expenditure on healthcare
in China amounted to less than 3% of GDP in 2019, according to
the World Bank, below the upper-middle-income average of 3.3%
and well below the nearly 8% typical of developed countries.
China has also declined to approve foreign mRNA-based Covid-19
vaccines, such as those developed by Pfizer and Moderna that
appear to offer superior protection against the virus compared
with vaccines developed using older technologies—including China’s
own. The rationale has apparently been to create room for Chinese
businesses to develop their own mRNA vaccines, a venture that could eventually be successful. By buying time for China’s domestic
vaccine entrepreneurs, however, Beijing may have squandered time
to get its most vulnerable vaccinated with the best protection available.
For now, China’s outbreak appears to have only reached truly
dangerous levels in Shanghai and the northern province of Jilin.
But the days of “zero Covid”—so successful at preventing deaths
and economic damage early in the pandemic—are now clearly numbered. Omicron is too contagious and the economic cost of containing it is unsustainable. If the Chinese government doesn’t use its remaining
time to aggressively vaccinate and boost its vulnerable with the
best protection available, build up intensive-care capacity, and
motivate the populace to protect itself by articulating a clear
intention to eventually move toward living with the virus, many
more situations like Shanghai and Hong Kong might become inevitable.
https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483
On Monday, 18 April 2022 at 16:58:17 UTC+10, David P. wrote:
Is Shanghai’s Covid-19 Disaster China’s Future?
By Nathaniel Taplin, April 13, 2022, WSJ
After largely keeping out Covid-19 for two years, China’s
largest city is battling an outbreak numbering over 100,000
cases. And while the Shanghai government has yet to acknowledge
any Covid fatalities, spiking deaths at some elderly care
facilities suggest that the numbers are there, whether
officially acknowledged or not.
Is this a sign of things to come in the rest of China?
Not necessarily, but if the government doesn’t move quickly
to vaccinate and boost its elderly, and start spending much
more heavily on hospital capacity, then the human and economic consequences could be disastrous.
Events in Hong Kong and Shanghai have demonstrated that a
“zero Covid” strategy can look very effective for a long time—
until suddenly it isn’t, either because a more infectious variant changes the game or because success itself breeds overconfidence.
To be sure, mainland China has tools that Hong Kong lacks. These
include the network of neighborhood party committees that have
formed the backbone of grass-roots monitoring and enforcement,
the state’s greater coercive and surveillance capabilities writ
large, and the ability to mobilize enormous manpower in a pinch
to build hospital space, conduct testing, or deliver food. The
political stakes on the mainland, where Communist Party General
Secretary Xi Jinping is poised to bid for an unprecedented third
term later this year, are also arguably even higher than in Hong Kong.
Shanghai’s struggle to deliver food to residents and staff
medical facilities shows that these advantages can crumble quickly, however, if Omicron’s exponential growth isn’t halted in its early stages. At the very least China will pay an enormous economic price
to bring the current outbreak under control. Cities under complete lockdown or very harsh control measures as of early April accounted
for about 13% of China’s economy, according to Gavekal Dragonomics. China’s target of “around 5.5%” growth for 2022—which looked ambitious
before the recent outbreak—now looks implausible.
More important, even assuming this outbreak is controlled, the
idea that China can achieve a “soft exit” from “zero Covid” at some future date without large-scale fatalities is seeming
increasingly questionable.
China invested heavily in healthcare for the past several years—
to the tune of 30% growth in 2020 and 25% last year, both far
faster than overall fixed asset investment, which only grew in
the single digits both years. But in some important respects,
that rapid investment is coming from a very low base. China had
only 4.4 intensive care beds per 100,000 residents in 2021,
according to Morgan Stanley—compared with around 11 in South
Korea and the U.K., and 26 in the U.S.
Mainland China also has some of the same weaknesses that led to
Hong Kong’s disastrous Omicron outbreak. As in Hong Kong, and for reasons that aren’t entirely clear, a large proportion of the
elderly remain unvaccinated or only partially vaccinated—about
half of the population over 80.
In Hong Kong, where government health expenditures are slightly
higher than China’s as a percentage of gross domestic product,
hospitals were easily overwhelmed by large numbers of elderly
patients once Omicron broke through. Hong Kong also has 7.1 ICU
beds per 100,000 residents, according to a February article in
the Hong Kong Medical Journal—significantly more on a per capita
basis than China. General government expenditure on healthcare
in China amounted to less than 3% of GDP in 2019, according to
the World Bank, below the upper-middle-income average of 3.3%
and well below the nearly 8% typical of developed countries.
China has also declined to approve foreign mRNA-based Covid-19
vaccines, such as those developed by Pfizer and Moderna that
appear to offer superior protection against the virus compared
with vaccines developed using older technologies—including China’s own. The rationale has apparently been to create room for Chinese businesses to develop their own mRNA vaccines, a venture that could eventually be successful. By buying time for China’s domestic
vaccine entrepreneurs, however, Beijing may have squandered time
to get its most vulnerable vaccinated with the best protection available.
For now, China’s outbreak appears to have only reached truly
dangerous levels in Shanghai and the northern province of Jilin.
But the days of “zero Covid”—so successful at preventing deaths
and economic damage early in the pandemic—are now clearly numbered. Omicron is too contagious and the economic cost of containing it is unsustainable. If the Chinese government doesn’t use its remaining
time to aggressively vaccinate and boost its vulnerable with the
best protection available, build up intensive-care capacity, and
motivate the populace to protect itself by articulating a clear
intention to eventually move toward living with the virus, many
more situations like Shanghai and Hong Kong might become inevitable.
https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483Lockdown was a very good decision in early 2020, when the virus was unknown and vaccine unavailable.
Unfortunately, the virus (new variants) are now very infectious, and lockdowns are very expensive. China should open up and rely on vaccines, like the rest of the world !!!
David P. wrote:Shanghai. The rest of the country's economy is still going about their activities and is pose to grow to 5.4 % in mid term of June.
Is Shanghai’s Covid-19 Disaster China’s Future?China is still growing well in a steady state from 4.0% at the end of December 2021 to 4.8% for the first quarter of this year 2922. It is within the world's analysts' forecasts even though the lockdown is still underway in the particular city of
By Nathaniel Taplin, April 13, 2022, WSJ
[....] https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483
[....]----------------
mccoy...@gmail.com wrote:------------
David P. wrote:Two years is hardly seconds if viewed from the long history of virus. The virus may have more tricks to get into the human body to do harm. Long covid appears to be
Is Shanghai’s Covid-19 Disaster China’s Future?Lockdown was a very good decision in early 2020, when the virus was unknown and vaccine unavailable.
By Nathaniel Taplin, April 13, 2022, WSJ
[...] https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483
Unfortunately, the virus (new variants) are now very infectious, and lockdowns are very expensive. China should open up and rely on vaccines, like the rest of the world !!!
less age discriminatory and a small number of these patients can put a lot of pressure on the health care system.
Anyway, lock down in China2022 is different from lock down in China 2020 because of past experience, accumulated medical expertise and vaccine availability .
stoney wrote:Shanghai. The rest of the country's economy is still going about their activities and is pose to grow to 5.4 % in mid term of June.
David P. wrote:
Is Shanghai’s Covid-19 Disaster China’s Future?China is still growing well in a steady state from 4.0% at the end of December 2021 to 4.8% for the first quarter of this year 2922. It is within the world's analysts' forecasts even though the lockdown is still underway in the particular city of
By Nathaniel Taplin, April 13, 2022, WSJ
[....] https://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483
[....]----------------
There's nothing "Normal" about adding one billion every 12 years,
like we've been doing since 1960! Nowhere else in Nature does a
population increase indefinitely without a crash! Nature's plan is
that every species has enemies that keep its numbers in check. Our plan
is to suppress communicable diseases, and we're slowly discovering that
this has significant costs. We should stop making flu, MMR, & Covid shots, to shorten the average life span by a few years, because we didn't
listen to the scientists who called for Zero Population Growth 50 years ago! When you go too far out on a limb, you need to back up!
--
--
On Monday, April 18, 2022 at 6:36:10 AM UTC-4, mccoy...@gmail.com wrote:
On Monday, 18 April 2022 at 16:58:17 UTC+10, David P. wrote:
Is Shanghai’s Covid-19 Disaster China’s Future?
By Nathaniel Taplin, April 13, 2022, WSJ
After largely keeping out Covid-19 for two years, China’s
largest city is battling an outbreak numbering over 100,000
cases. And while the Shanghai government has yet to acknowledge
any Covid fatalities, spiking deaths at some elderly care
facilities suggest that the numbers are there, whether
officially acknowledged or not.
Is this a sign of things to come in the rest of China?
Not necessarily, but if the government doesn’t move quickly
to vaccinate and boost its elderly, and start spending much
more heavily on hospital capacity, then the human and economic consequences could be disastrous.
Events in Hong Kong and Shanghai have demonstrated that a
“zero Covid” strategy can look very effective for a long time— until suddenly it isn’t, either because a more infectious variant changes the game or because success itself breeds overconfidence.
To be sure, mainland China has tools that Hong Kong lacks. These
include the network of neighborhood party committees that have
formed the backbone of grass-roots monitoring and enforcement,
the state’s greater coercive and surveillance capabilities writ
large, and the ability to mobilize enormous manpower in a pinch
to build hospital space, conduct testing, or deliver food. The
political stakes on the mainland, where Communist Party General Secretary Xi Jinping is poised to bid for an unprecedented third
term later this year, are also arguably even higher than in Hong Kong.
Shanghai’s struggle to deliver food to residents and staff
medical facilities shows that these advantages can crumble quickly, however, if Omicron’s exponential growth isn’t halted in its early stages. At the very least China will pay an enormous economic price
to bring the current outbreak under control. Cities under complete lockdown or very harsh control measures as of early April accounted
for about 13% of China’s economy, according to Gavekal Dragonomics. China’s target of “around 5.5%” growth for 2022—which looked ambitious
before the recent outbreak—now looks implausible.
More important, even assuming this outbreak is controlled, the
idea that China can achieve a “soft exit” from “zero Covid” at some future date without large-scale fatalities is seeming
increasingly questionable.
China invested heavily in healthcare for the past several years—
to the tune of 30% growth in 2020 and 25% last year, both far
faster than overall fixed asset investment, which only grew in
the single digits both years. But in some important respects,
that rapid investment is coming from a very low base. China had
only 4.4 intensive care beds per 100,000 residents in 2021,
according to Morgan Stanley—compared with around 11 in South
Korea and the U.K., and 26 in the U.S.
Mainland China also has some of the same weaknesses that led to
Hong Kong’s disastrous Omicron outbreak. As in Hong Kong, and for reasons that aren’t entirely clear, a large proportion of the
elderly remain unvaccinated or only partially vaccinated—about
half of the population over 80.
In Hong Kong, where government health expenditures are slightly
higher than China’s as a percentage of gross domestic product, hospitals were easily overwhelmed by large numbers of elderly
patients once Omicron broke through. Hong Kong also has 7.1 ICU
beds per 100,000 residents, according to a February article in
the Hong Kong Medical Journal—significantly more on a per capita
basis than China. General government expenditure on healthcare
in China amounted to less than 3% of GDP in 2019, according to
the World Bank, below the upper-middle-income average of 3.3%
and well below the nearly 8% typical of developed countries.
China has also declined to approve foreign mRNA-based Covid-19
vaccines, such as those developed by Pfizer and Moderna that
appear to offer superior protection against the virus compared
with vaccines developed using older technologies—including China’s own. The rationale has apparently been to create room for Chinese businesses to develop their own mRNA vaccines, a venture that could eventually be successful. By buying time for China’s domestic
vaccine entrepreneurs, however, Beijing may have squandered time
to get its most vulnerable vaccinated with the best protection available.
For now, China’s outbreak appears to have only reached truly
dangerous levels in Shanghai and the northern province of Jilin.
But the days of “zero Covid”—so successful at preventing deaths and economic damage early in the pandemic—are now clearly numbered. Omicron is too contagious and the economic cost of containing it is unsustainable. If the Chinese government doesn’t use its remaining time to aggressively vaccinate and boost its vulnerable with the
best protection available, build up intensive-care capacity, and motivate the populace to protect itself by articulating a clear intention to eventually move toward living with the virus, many
more situations like Shanghai and Hong Kong might become inevitable.
Two years is hardly seconds if viewed from the long history of virus. The virus may have more tricks to get into the human body to do harm. Long covid appears to behttps://www.wsj.com/articles/is-shanghais-covid-disaster-chinas-future-11649867483Lockdown was a very good decision in early 2020, when the virus was unknown and vaccine unavailable.
Unfortunately, the virus (new variants) are now very infectious, and lockdowns are very expensive. China should open up and rely on vaccines, like the rest of the world !!!
less age discriminatory and a small number of these patients can put a lot of pressure on the health care system.
Anyway, lock down in China2022 is different from lock down in China 2020 because of past experience, accumulated medical expertise and vaccine availability .
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