The head of the World Health Organization has warned that China’s zero-Covid strategy is unsustainable, as new modelling showed the country risked unleashing a “tsunami” of coronavirus infections and causing 1.6mn deaths if it abandons the policy.
“As we all know, the virus is evolving, changing its behaviours, becoming more transmissible. With that changing behaviour, changing your measures will be very important. When we talk about the zero-Covid strategy, we don’t think it’s sustainable,” Tedros Adhanom Ghebreyesus, WHO director-general, said on Tuesday.
He said the WHO had discussed the issue with Chinese experts, adding that “considering the behaviour of the virus I think a shift [in China’s strategy] will be very important”.
The remarks came as modelling projections by researchers at Shanghai’s Fudan University estimated that an unchecked surge of the Omicron coronavirus variant could result in 112mn symptomatic infections, 2.7mn intensive care admissions and almost 1.6mn fatalities between May and July.
The study, published in the scientific journal Nature, underscored fears that China would be hit hard by a large Omicron wave if restrictions were eased, because of its low vaccine uptake among older groups and reliance on less effective jabs.
Thanks for reading FirstFT Asia. Here’s the rest of the day’s news — Emily
Five more stories in the news
1. Musk says he would reverse Trump’s Twitter ban Elon Musk has said he would reverse Donald Trump’s ban from Twitter, accusing the social media company of leftwing bias that had aggravated political divisions in the US. “I think it was a morally bad decision, and foolish in the extreme,” Musk said. Watch Musk’s interview with FT’s Peter Campbell here.
2. Putin preparing for ‘prolonged conflict’ in Ukraine, warns US The US believes Russian president Vladimir Putin has not changed his aims in Ukraine and that his focus on the south-eastern Donbas region is a temporary shift “to regain the initiative” after failing to capture Kyiv.
More on the war: Ukraine has upgraded its war aims and is now looking to push Russian forces out of the country.
3. CVC pushes back IPO plans amid market turmoil Europe’s biggest private equity group CVC Capital Partners has pushed back plans for a stock market listing in the first half of this year, with market turbulence standing in the way of a multibillion-euro flotation that it had hoped to carry out in June. Sign up to our Due Diligence newsletter for the latest corporate finance and private equity news.
4. Nintendo announces surprise 10-for-1 stock split The Kyoto-based games maker announced a 10-for-one stock split to address longtime investor calls to improve corporate governance. The unexpected move would finally allow retail investors to invest in the creator of Mario and Donkey Kong by making shares cheaper to acquire.
More companies news: Coinbase’s trading volumes fell more than 40 per cent in the first quarter, as its worse than expected earnings and bleak outlook underscored the fallout from the crypto bear market.
5. Emerging markets hit by rising rates and slower growth Emerging market currencies have fallen by their most since the early stages of the pandemic as a “toxic” mix of rising US interest rates and slowing Chinese growth dims the outlook for developing economies around the world.
The day ahead
China April CPI and PPI data Last month’s consumer price index and producer price index figures are set to be released.
Australian TV debate The third leaders’ debate between Scott Morrison and Anthony Albanese will take place Wednesday, 10 days before the election. (SBS News)
Earnings Compass, ITV, Panasonic, Suzuki Motor Corporation, Takeda, Thyssenkrupp, Toyota, Tui Travel and Walt Disney Company are among the companies reporting results Wednesday. Disney’s results are poised to show whether the Disney+ streaming service has extended the strong growth it reported in its first quarter, or suffered a Netflix-style meltdown.
What else we’re reading
South Koreans seek ways to counter North’s nuclear threat Ahead of his inauguration South Korean president Yoon Suk-yeol pledged to “dramatically strengthen” his nation’s defences against the rapidly developing nuclear forces of North Korea. His comments highlight an intensifying debate over whether to push for a return of US nuclear weapons to the Korean peninsula.
New Zealand’s jobs law will cause ripples beyond its shores Legislation going through New Zealand’s parliament aims to make bad jobs better by setting a minimum floor for pay and conditions. Sarah O’Connor says the bill represents a huge shift in the labour market — and its success or failure will have an impact on the wider world.
Kishida’s pitch for corporate Japan faces toughest test at home While Prime Minister Fumio Kishida woos foreign investors, he will have to overcome resistance among domestic households to deploying excess cash, writes Leo Lewis. While US household financial assets have tripled over the past decade, Japanese household financial assets increased only 1.4 times.
The race to mine lithium in America’s backyard China dominates the supply chain for the manufacturing of lithium batteries, including the processing of minerals. But as the US attempts to surge ahead in the global race to build green batteries, Washington is encouraging companies to break ground on mining projects — even amid criticism from environmentalists.
Bored Ape creator’s next windfall The start-up behind Bored Ape Yacht Club, the non-fungible token collection of digital art snapped up for millions of dollars by celebrities and crypto-enthusiasts, has an ambitious new idea: selling plots of virtual land in its own metaverse, an alternative to platforms being built by Silicon Valley companies such as Apple and Meta.
Things to do in Tokyo
Japan is home to eight winners of the Pritzker Prize, widely considered architecture’s highest honour. No country has more. Explore Globetrotter’s list of the 12 highlights in Tokyo’s constellation of starchitecture.
Source: Economy - ft.com
