China virus deaths rise to nine, heightening global alarm

By Cate Cadell and David Stanway

BEIJING/SHANGHAI (Reuters) – Deaths from China’s new flu-like virus rose to nine on Wednesday with more than 470 confirmed cases, heightening global fears of contagion from an infection suspected to have come from animals.

The previously unknown and contagious coronavirus strain emerged from the central city of Wuhan, with cases now detected as far away as the United States. Officials believe the origin to be a market where wildlife is traded illegally.

Contrasting with its secrecy over the 2002-03 Severe Acute Respiratory Syndrome (SARS) that killed nearly 800 people, China has this time given regular updates to try and head off panic as millions travel at home and abroad for the Lunar New Year.

“The rise in the mobility of the public has objectively increased the risk of the epidemic spreading,” National Health Commission vice-minister Li Bin acknowledged.

The World Health Organization (WHO) began an emergency meeting to rule if the outbreak was a global health emergency.

Amid official exhortations to stay calm, many Chinese were cancelling trips, buying face masks, avoiding public places like cinemas and shopping centers, and even turning to an online plague simulation game or watching disaster movie “The Flu” as a way to cope.

“The best way to conquer fear is to confront fear,” said one commentator on China’s Twitter-like Weibo.

The virus has spread from Wuhan around China to major population centers including Beijing, Shanghai, Macau and Hong Kong, with 473 cases confirmed in the country. Abroad, Thailand has confirmed four cases, while the United States, Taiwan, South Korea and Japan have each reported one.

President Donald Trump said the United States’ Centers for Disease Control and Prevention had a good containment plan. “We think it is going to be handled very well,” he said at Davos in Switzerland.

RESPIRATORY THREAT

Li said the virus, which can cause pneumonia, was being spread via breathing. Symptoms include fever, coughing and difficulty breathing. About 2,200 people in contact with infected people were in isolation.

There is no vaccine for the virus.

“I believe the government for sure, but I still feel fearful. Because there’s no cure for the virus,” said Fu Ning, a 36-year-old woman in Beijing. “You have to rely on your immunity if you get an infection. It sounds very scary.”

Fears of a pandemic initially spooked markets, with aviation and luxury goods stocks hit and the yuan falling, but they were regaining their footing on Wednesday in approval of China’s containment response.

Across China, companies from Foxconn <2317.TW> to Huawei Technologies [HWT.UL] and HSBC Holdings <HSBA.L> were warning staff to avoid Wuhan and handing out masks. Terry Gou, the billionaire founder of Apple <AAPL.O> supplier Foxconn, said he was advising employees not to visit China.

With more than 11 million people, Wuhan is central China’s main industrial and commercial center and an important transport hub, home to the country’s largest inland port and gateway to its giant Three Gorges hydroelectric dam.

WHO spokesman Tarik Jasarevic said new cases would appear as China stepped up monitoring. But Li said there was no evidence of “super-spreaders” capable of disseminating the virus more widely, as happened during the SARS outbreak. SARS was thought to have crossed to humans from civet cats sold for food.

GLOBAL PRECAUTIONS

Airports round the world have stepped up screening of people from China.

The Chinese-ruled gambling hub of Macau confirmed its first case of pneumonia linked to the coronavirus and tightened body-temperature screening measures.

A first case of the virus emerged in Hong Kong on Wednesday, media reported. The patient arrived via high-speed railway from the mainland and had been quarantined.

“The whole world is watching,” the city’s commerce secretary, Edward Yau, told Reuters at the World Economic Forum in Davos.

North Korea banned foreign tourists from Wednesday due to the virus, several foreign tour operators said, losing one of its main sources of foreign currency.

Sport too was affected, with some qualifying boxing matches for the 2020 Olympics set for Wuhan canceled and women’s football qualifiers shifted to Nanjing.

China’s Central Political and Legal Affairs Commission, the top legal authority in the communist-ruled country, posted on Tuesday that anyone failing to report virus cases “will be forever nailed to the pillar of historical shame”.

And state broadcaster CCTV has shown footage of doctors in quarantine gear in Wuhan.

But despite such openness, some experts were sceptical.

“We have reason to doubt whether surv (surveillance) is adequate as cases mount,” tweeted Lawrence Gostin, a public health expert at Georgetown University Law School in Washington.

Neil Ferguson, an infectious disease specialist at Imperial College London, estimated the number of cases in Wuhan at about 4,000 and predicted the outbreak would spread fast.

“Novel viruses can spread much faster through the population than other viruses because we have no immunity to them,” he said.

(Reporting by Cate Cadell, Lusha Zhang and Jiang Xihao in Beijing, David Stanway in Shanghai, Anne Marie Roantree in Hong Kong, Ben Blanchard in Taipei, Josh Smith in Seoul, Stephanie Nebehay in Geneva, Kate Kelland in London, Alexandra Alper in Davos, Shreyashi Sanyal in Bangalore, Ian Ransom in Melbourne; Writing by Andrew Cawthorne; Editing by Janet Lawrence)

Health officials confirm first U.S. case of China coronavirus, expand screening

By Julie Steenhuysen

(Reuters) – A U.S. resident who recently traveled to China has been diagnosed with the newly identified coronavirus that has sickened more than 300 people and killed at least six in China, the U.S. Centers for Disease Control and Prevention (CDC) said on Tuesday.

The U.S. patient is responding well to treatment and was not severely ill, CDC and Washington State health officials said.

CDC officials said the agency is preparing for more U.S. cases of the coronavirus that originated in the Chinese city of Wuhan, and raised its travel alert for Wuhan to a level 2, calling for enhanced precautions. Under that alert level, the CDC recommends travelers to Wuhan should avoid contact with sick people, animals or animal markets.

“We do expect additional cases in the United States and globally,” Dr. Nancy Messonnier, a CDC respiratory diseases expert said on a conference call with reporters.

CDC officials said they have begun tracking down individuals who came in contact with the patient to check them for symptoms.

Last week, the CDC began screening travelers from China at U.S. airports in New York, Los Angeles and San Francisco. On Tuesday, the agency said it will expand screening for the virus to the Hartsfield-Jackson International Airport in Atlanta and O’Hare International Airport in Chicago.

Besides the United States, cases outside of China have been reported in South Korea, Thailand and Japan.

“I don’t think looking at what we know so far that this it on the scale of SARS and MERS, the two most significant coronavirus outbreaks that we know from history,” Dr. Amesh Adalja, from the Johns Hopkins University Center for Health Security, said in a phone interview.

“It is early days in this outbreak and we don’t have a good handle on the severity of illness,” Adalja added.

On the call, CDC officials said they have screened more than 1,200 passengers since Jan. 17. None of them have been sent on for additional testing.

The U.S. traveler from Washington state had returned on Jan. 15, arriving at Seattle-Tacoma International Airport, which is not on the U.S. list for enhanced screening.

The patient sought care at a medical facility in Everett, Washington, and was treated for the illness. Based on his travel history and symptoms, healthcare professionals suspected the new coronavirus.

Specimens were taken from the patient and sent to the CDC for testing. The agency said it has developed a new test that allowed it to identify the presence of the virus in a traveler.

Washington state health officials said they are taking steps to protect the public and continue to believe the risk is low. Healthcare personnel are taking precautions to prevent the infection from spreading to hospital staff, they added.

As is often the case, preliminary information suggests older adults with underlying health conditions may be at increased risk of severe disease, CDC’s Messonnier said.

The agency is working with health officials in China and globally to better understand the virus and any potential treatments.

Messonnier confirmed that the CDC is working with the U.S. National Institutes of Health to develop diagnostics and a vaccine. U.S. officials have said it could take at least a year of testing before any vaccine could be used on the public.

(Reporting by Manas Mishra in Bengaluru and Julie Steenhuysen in Chicago; Editing by Bill Berkrot)

New China virus claims sixth victim as holiday travel stokes risk

New China virus claims sixth victim as holiday travel stokes risk
By Se Young Lee and Lusha Zhang

BEIJING (Reuters) – The toll from a new virus in China rose to six deaths and more than 300 cases on Tuesday as millions of Chinese prepared to travel for the Lunar New Year, heightening contagion risks.

Many in China scrambled to buy face masks to protect themselves from the previously unknown, flu-like coronavirus infection and airports around the world tightened screening.

The outbreak, which began in the central Chinese city of Wuhan, also worried financial markets as investors recalled the economic damage from China’s Severe Acute Respiratory Syndrome (SARS) epidemic in 2002/2003 that it initially covered up.

The SARS coronavirus outbreak killed nearly 800 people then.

“We’ll stay at home during the holiday. I’m scared as I remember SARS very well,” said Zhang Xinyuan, who had been bound from Beijing for the Thai resort of Phuket before she and her husband decided to cancel their air tickets.

Authorities have confirmed more than 300 cases of the new coronavirus in China, mostly in Wuhan, a provincial capital and transportation hub, where it may have come from a seafood market.

Symptoms include fever, coughing and difficulty in breathing, and the viral infection can cause pneumonia.

Wuhan mayor Zhou Xianwang told Chinese state television on Tuesday six people had died in his city. The disease was spreading further around other parts of China, however, including five cases in the national capital Beijing.

Fifteen medical personnel are among those infected.

Abroad, Thailand has reported two cases and South Korea one, all involving Chinese from Wuhan. Japan and Taiwan also confirmed one case each, both nationals who had been to Wuhan.

The World Health Organization (WHO) will hold a meeting on Wednesday to consider whether the outbreak is an international public health emergency.

MEDICS AND MARKETS ALARMED

“Information about newly reported infections suggest there may now be sustained human-to-human transmission,” said WHO’s regional director for the western Pacific, Takeshi Kasai.

Taiwan, the self-ruled island that China claims as its own, set up an epidemic response center. More than 1,000 beds were prepared in isolation wards in case the virus spreads further.

North Korea was to temporarily ban foreign tourists, who are mainly Chinese, a foreign tour operator said.

The scare stirred risk aversion on global markets, with Asia particularly hit.

Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2.8% <.HSI>. Japan’s Nikkei <.N225> lost 0.9% and Shanghai blue chips <.CSI300> 1.7%, with airlines under pressure.

In Europe, shares of luxury goods makers, which have large exposure to China, were among those declining the most.

China’s yuan fell almost 0.7% in offshore trading to 6.9126 per dollar <CNH=D3>. Onshore, it dipped to its lowest in over a week at 6.9094 <CNY=CFXS>.

Though the origin of the virus has yet to be identified, WHO said the primary source was probably animal. Chinese officials have linked the outbreak to Wuhan’s seafood market.

MORE SCREENING AND MASKS

“The outbreak of a SARS-like coronavirus in Wuhan is developing into a major potential economic risk to the Asia-Pacific region now that there is medical evidence of human-to-human transmission,” said Rajiv Biswas, Asia Pacific Chief Economist for IHS Markit.

So far, the WHO has not recommended trade or travel restrictions but they may be discussed on Wednesday.. China’s National Health Commission is also scheduled to give an update at a press briefing at 10 a.m. (0200 GMT) on Wednesday.

Airports in the United States, Australia and across Asia have begun extra screening for passengers from Wuhan.

In the city itself, officials have been using infrared thermometers to screen passengers at airports, railway stations and other passenger terminals since Jan. 14.

The Lunar New Year is a major holiday for Chinese, many of whom travel to join family or have a foreign holiday.

Long lines formed to buy face masks in cities. Some online vendors limited sales of masks and hand sanitizers as demand surged.

Shanghai city’s market regulator warned it would punish speculators hoarding masks or other products used for preventing infectious diseases, according to the Shanghai Observer web publication.

Chinese travel booking platforms from Trip.com <TCOM.O> to Alibaba Group’s <BABA.N> Fliggy said they would offer free cancellations on bookings made for Wuhan, while South Korean budget airline T’way Air <091810.KS> postponed its launch of a new route to the city.

Zhong Nanshan, head of the National Health Commission’s team investigating the outbreak, sought to ease alarm, saying in footage shown by state television there was no danger of a repeat of the SARS epidemic so long as precautions were taken.

(Reporting by Brenda Goh in Shanghai, Se Young Lee, Sophie Yu, Lusha Zhang, Huizhong Wu and Judy Hua in Bejing, John Geddie in Singapore; Josh Smith in Seoul; Kate Kelland in London; Writing by Andrew Cawthorne; Editing by Angus MacSwan)

Virus spreads to more Chinese cities, President Xi says containment is priority

By Se Young Lee and Colin Qian

BEIJING (Reuters) – An outbreak of a new coronavirus has spread to more Chinese cities, including the capital Beijing and Shanghai, authorities said on Monday, and a fourth case has been reported beyond China’s borders.

China’s National Health Commission confirmed that the virus, which causes a type of pneumonia, can pass from person-to-person, the official Xinhua News Agency said.

President Xi Jinping said curbing the outbreak and saving lives was a top priority as the number of patients more than tripled and a third person died.

Adding to the difficulties of containing it, hundreds of millions of Chinese will be traveling domestically and abroad during the Lunar New Year holiday that starts this week.

Authorities around the globe, including in the United States and many Asian countries, have stepped up screening of travelers from Wuhan, the central city where the virus was first discovered.

“Wuhan is a major hub and with travel being a huge part of the fast approaching Chinese New Year, the concern level must remain high. There is more to come from this outbreak,” said Jeremy Farrar, a specialist in infectious disease epidemics and director of the Wellcome Trust global health charity.

Authorities confirmed a total of 217 new cases of the virus in China as of 6 p.m. local time (1000 GMT) on Monday, state television reported, 198 of which were in Wuhan.

Five new cases were confirmed in Beijing and 14 more in Guangdong province, the report said. Another statement confirmed a new case in Shanghai, bringing the number of known cases worldwide to 222.

“People’s lives and health should be given top priority and the spread of the outbreak should be resolutely curbed,” President Xi was quoted as saying by state television.

The virus belongs to the same family of coronaviruses as Severe Acute Respiratory Syndrome (SARS), which killed nearly 800 people globally during a 2002/03 outbreak that also started in China.

Its symptoms include fever and difficulty in breathing, which are similar to many other respiratory diseases and pose complications for screening efforts.

Zhong Nanshan, a respiratory expert and head of the health commission team investigating the outbreak, confirmed that two cases of infection in Guangdong province were due to human-to-human transmission, Xinhua said. Some medical staff have been infected, it added, but gave no number.

BEYOND BORDERS

South Korea on Monday confirmed its first case, a 35-year-old Chinese national who had traveled from Wuhan, the fourth patient reported outside China.

Last week, two cases were reported in Thailand and one in Japan. All three involved people from Wuhan or who recently visited the city.

A report by London Imperial College’s MRC Centre for Global Infectious Disease Analysis estimated that by Jan. 12 there were 1,723 cases in Wuhan City with onset of related symptoms. Chinese health authorities have not commented directly on the report.

“This outbreak is extremely concerning. Uncertainty and gaps remain, but it is now clear that there is person to person transmission,” Farrar said.

The World Health Organization said on Monday “an animal source” appeared most likely to be the primary source of the outbreak and that some “limited human-to-human transmission” occurred between close contacts.

China’s state council reiterated the government will step up prevention efforts and find the source of infection and transmission channels as soon as possible, state television said on Monday.

Shares in pharmaceutical firms and mask makers in China surged Monday because of the outbreak.

“Who knows how many people who have been to Wuhan may be unaware that they have already been infected?,” said one commentator on Chinese social media platform Weibo

The state-run Global Times newspaper said in an editorial the government needs to disclose all information and not repeat the mistakes made with SARS. Chinese officials covered up the SARS outbreak for weeks before a growing death toll and rumors forced it to reveal the epidemic.

“Concealment would be a serious blow to the government’s credibility and might trigger greater social panic,” the editorial said.

(Reporting by Winni Zhou and Josh Horwitz in Shanghai, Roxanne Liu, Sophie Yu, Judy Hua and Colin Qian and Se Young Lee in Beijing, Joyce Lee in Seoul and Kate Kelland in London; Writing by Se Young Lee; Editing by Angus MacSwan)

Disease that killed millions of China’s pigs poses global threat

By Tom Polansek

CHICAGO (Reuters) – Bettie the beagle, a detector dog for U.S. Customs and Border Protection, picked up the scent of pork on a woman arriving from China at Chicago’s O’Hare International Airport.

Soon the dog’s handler discovered and confiscated a ham sandwich in the purse of a passenger who had flown on a China Eastern Airlines flight from Shanghai.

The danger? That the food might be contaminated with African swine fever and spread the disease to the United States. China has lost millions of pigs in outbreaks of the disease, pushing its pork prices to record highs, forcing purchases of costly imports and roiling global meat markets.

“It’s very likely it may come here if we aren’t more vigilant,” said Jessica Anderson, the handler for the pork-sniffing dog and an agricultural specialist for the border protection agency.

Bettie is among an expanded team of specially trained beagles at U.S. airports, part of a larger effort to protect the nation’s $23 billion pork industry from a disease that has decimated China’s hog herd, the world’s largest. Governments worldwide are scrambling to shore up their defenses as the disease spills over China’s borders, according to Reuters reporting from nine countries. The efforts underscore the grave threat to global agriculture.

African swine fever has spread to Southeast Asia and eastern Europe, with cases found in Vietnam, Cambodia, Laos, Korea, Myanmar, the Philippines, Poland, Belgium and Bulgaria. Around the globe, those countries and others that have so far sidestepped the epidemic are cracking down on travelers, increasing cargo screenings and banning meat imports.

Pork-producing countries stand to lose billions of dollars if the disease infects their industries because outbreaks devastate farms and shut export markets. African swine fever does not threaten humans but there’s no vaccine or cure for infected pigs.

If the disease enters the United States, the top pork-exporting nation with 77.3 million hogs, the government would struggle to protect the industry, participants in a four-day drill in September told Reuters.

 

“If this gets in, it will destroy our industry as we know it,” said Dave Pyburn, the National Pork Board’s senior vice president of science and technology.

The U.S. Department of Agriculture (USDA) simulated an outbreak in Mississippi that spread to the nation’s top pig-producing states, including North Carolina, Iowa and Minnesota. Veterinarians, farmers and government officials gathered at command centers where they tested their capacity to swiftly detect, control and clean up after an outbreak.

The experience showed the U.S. needs to increase its capacity to quickly test pigs for the disease and to dispose of the animals without spreading it, said Pyburn, who participated in the drill.

In China, the top global pork consumer, the disease has been devastating. The exact number of hog deaths is not known. Rabobank estimated the country lost up to 55% of its pig herd last year. But the Chinese government has reported smaller losses in the country’s $1 trillion hog sector since the first case in August 2018.

GLOBAL RESPONSE

The U.S. government is fielding dogs at airports and seaports, conducting outbreak-response drills and adding capacity to test pigs. France and Germany are killing hundreds of thousands of wild boar that might carry the disease. France also erected 132 kilometers (82 miles) of fencing to keep out wild boar and is planning stricter sanitary rules for pig farming, including requirements to disinfect trucks that transport swine.

Thailand culled pigs in a province close to Myanmar, where the disease has been found. South Korea ordered soldiers on its border with North Korea to capture wild boar, while Vietnam used troops to ensure infected pigs were culled.

Australia expelled travelers from Vietnam for smuggling pork and banned imports of pork products. Australia also deployed advisors to Pacific islands in an attempt to protect its closest neighbors from African swine fever. If such efforts fail, it could cost the country more than 2 billion Australian dollars ($1.4 billion) over five years, according to Australian Pork Limited, an industry group.

“It is certainly the biggest threat to commercial raising that we have ever seen, and arguably the biggest threat to any commercial livestock species we’ve seen,” said Mark Schipp, Australia’s chief veterinary officer.

U.S. officials plan to suspend domestic shipments of pigs among farms and to slaughterhouses if African swine fever is detected. The USDA and states could issue orders halting the movement of livestock in certain areas as a way to contain the disease.

The USDA said in a statement to Reuters that the September drill highlighted shortcomings in its guidance to states detailing when and how to limit the movement of pigs. The government is also increasing the number of laboratories it uses to test for African swine fever.

“We have identified some gaps,” said Amanda Luitjens, who took part in the drill and is animal welfare auditor for Minnesota-based pork producer Christensen Farms. “The thought of it making it to the United States is scary.”

BANS ON GARBAGE FEEDING

Travelers transporting meat represent the biggest risk for African swine fever to spread to the United States because the disease can live for weeks in pork products, Pyburn said.

Contaminated food can be fed to feral pigs or livestock in a practice known as garbage feeding, which the USDA says has caused outbreaks of swine diseases around the world. U.S. farmers are supposed to obtain a license to feed pigs with food waste that contains meat and cook it to kill disease organisms.

African swine fever can also spread from pig to pig, from bites by infectious ticks and through objects such as trucks, clothing and shoes that have come into contact with the virus.

China banned the transportation of live pigs from infected provinces and neighboring regions in an unsuccessful bid to contain its outbreaks. It also culled pigs and outlawed the use of kitchen waste for swine feed.

The disease has been detected in food products seized at airports in South Korea, Japan, Australia, the Philippines and northern Ireland.

African swine fever is thought to have arrived in the Philippines through contaminated pork smuggled from China. The Philippines is now conducting mandatory checks on carry-on luggage of passengers from countries with outbreaks.

The government of the province of Cebu in central Philippines banned imported products and those from the main Philippine island of Luzon to avoid swine fever. More than 60,000 pigs have died or been culled in Luzon because of the disease. The Philippines Department of Agriculture also banned garbage feeding that included leftover food from airports, airlines and seaports.

In the United States, low inspection rates at ports of entry increase the likelihood for illegal pork to enter the country undetected, the USDA said in a report assessing the risk from African swine fever. The agency works with Customs and Border Protection to alert all U.S. ports each time a new country is confirmed to have the disease, requesting increased scrutiny on travelers and shipments.

But Customs and Border Protection estimates it needs 3,148 people to specialize in agricultural inspections at entry points like airports and only has about 2,500.

The U.S. Senate last year authorized the annual hiring of 240 agricultural specialists a year until the workforce shortage is filled, and the training and assignment of 20 new canine teams a year. The government approved 60 new beagle teams to work at airports and seaports last year, for a total of 179 teams, according to USDA.

Those teams face a daunting challenge, said Senator Gary Peters, a Michigan Democrat who introduced the legislation with other lawmakers.

“Every day, millions of passengers and tens of thousands of shipping containers carrying food products cross our nation’s borders,” he said, “any one of which could do significant damage to America’s food supply and agricultural industries.”

(Reporting by Tom Polansek in Chicago, Enrico Dela Cruz in Manila, Colin Packham and John Mair in Sydney, Nigel Hunt in London, Gus Trompiz in Paris; Editing by Caroline Stauffer and Brian Thevenot)

Human Rights Watch report blasts China as its chief barred from Hong Kong

UNITED NATIONS/BEIJING (Reuters) – U.S.-based Human Rights Watch (HRW) has released a scathing review of the Chinese government, calling on the international community to push back against “the most brutal and pervasive oppression China has seen in decades” in its 2020 annual report.

The organization’s global head, Kenneth Roth, was denied entry on Sunday to Hong Kong where he was expected to launch the report, which covers the global human rights situation but features China prominently.

The report condemns Beijing’s treatment of Uighur Muslims in the Xinjiang region and warns that China’s growing political influence and efforts to censor people abroad pose an “existential threat to the international human rights system.”

“If not challenged, Beijing’s actions portend a dystopian future in which no one is beyond the reach of Chinese censors, and an international human rights system so weakened that it no longer serves as a check on government repression,” Roth said in the report.

China last month announced sanctions on HRW and other U.S. nongovernmental organizations (NGOs) as a countermeasure to the U.S. Hong Kong Human Rights and Democracy Act, which supports anti-government protests in Hong Kong and threatens China with sanctions for human rights abuses.

Beijing says the NGOs are encouraging violent crime linked to anti-government protests in Hong Kong that have plagued the city for over six months. Roth rejected the accusation.

Chinese state media has also broadly blamed fake news and Western interference for landslide victories against pro-Beijing election candidates in Taiwan and Hong Kong.

On Wednesday U.S. democracy watchdog group Freedom House, which was also hit with sanctions, released a separate report criticizing Beijing’s efforts to influence media overseas and calling on governments to impose penalties on Chinese officials.

Geng Shuang, a spokesman for China’s foreign ministry, told reporters he would not read either report, adding that both organizations “distort the truth” and have no objectivity.

“Currently, China’s human rights’ situation is the best it’s been in history,” said Geng.

The HRW report, released at the United Nations on Tuesday, said Hong Kong police have used “excessive force” and have “increasingly restricted freedom of assembly” there. It criticized Hong Kong’s pro-Beijing leader Carrie Lam for refusing to launch an independent investigation into police abuses.

TRUMP CREDIBILITY

Beijing has previously criticized HRW over its investigations on surveillance technology and re-education camps in Xinjiang. The United Nations estimates roughly 1 million Uighurs have been previously detained in Xinjiang.

Beijing denies any mistreatment of Uighurs or others in Xinjiang, saying it is providing vocational training to help stamp out Islamist extremism and separatism and to teach new skills.

China has always been sensitive to rights allegations, but in the past year it has become increasingly forceful in rebuking criticisms, which have periodically threatened to derail trade negotiations with the United States.

“To avoid criticism of them, the Chinese government is trying with increasing ferocity to use its economic and diplomatic clout to silence critical voices abroad and to undermine global institutions that protect human rights,” Roth told a news conference at the United Nations.

When it came to countering China on human rights, Roth said several important governments have been “missing in action.”

“(U.S. President Donald) Trump has lost credibility because he so often embraces friendly autocrats, rather than defend the human rights standards that they flout,” Roth said.

“The European Union has been diverted by Brexit, it’s been obstructed by nationalist members, it’s been divided over migration and as a result it’s often found it difficult to adopt a strong common voice on human rights,” he said. “Other governments are simply bought off (by China.)”

Chinese diplomat Xing Jisheng addressed reporters at the end of the news conference, saying China totally rejected the HRW report as prejudiced and fabricated.

“Hong Kong is a part of China, so given what you said here, I think it is clear to all why you have been barred such entry,” Xing told Roth.

(Reporting by Cate Cadell in Beijing, Editing by Raju Gopalakrishnan and Jonathan Oatis)

U.S., China set to sign massive purchases deal, easing trade war

By David Lawder

WASHINGTON (Reuters) – U.S. President Donald Trump and Chinese Vice Premier Liu He will sign an initial trade deal on Wednesday that will roll back some tariffs and see China boost purchases of U.S. goods and services, defusing an 18-month conflict between the world’s two largest economies.

Liu said the two sides will work more closely together to obtain tangible results and achieve a win-win relationship despite differences in their political and economic models, China’s official Xinhua news agency reported on Wednesday.

U.S. officials called the deal a huge win that marked a significant shift in Washington’s relations with China, but said it included a tough enforcement measure that could trigger renewed tariffs if Beijing does not live up to its promises.

The Phase 1 agreement caps a trade war marked by tit-for-tat tariffs that has hit hundreds of billions of dollars in goods, roiling financial markets, uprooting supply chains and slowing global growth.

Some analysts and economists have questioned whether the outcome of the drawn-out talks justified that economic pain.

Trump and Liu, who led the Chinese side in the trade talks with Washington, are scheduled to sign the 86-page Phase 1 deal at a White House event at 11:30 a.m. EST (1630 GMT) before over 200 invited guests from business, government and diplomatic circles.

It is not clear at this time whether the entire document will be released on Wednesday.

Trump, who entered the White House in 2017 vowing to rebalance global trade in favor of the United States, has already begun touting the deal as a pillar in his 2020 re-election campaign, calling it “a big beautiful monster” at a rally in Toledo, Ohio last week.

“Our farmers will take it in. I keep saying, ‘Go buy larger tractors, go buy larger tractors,'” Trump said.

The centerpiece of the deal is a pledge by China to purchase an additional $200 billion worth of U.S. farm products and other goods and services over two years. That will help reduce the bilateral U.S. trade deficit in goods, which peaked at $420 billion in 2018. The United States had a small services trade surplus with China of $40.5 billion in 2018.

Top White House economic adviser Larry Kudlow told Fox News the agreement would add 0.5 percentage point to U.S. gross domestic product growth in both 2020 and 2021.

Kudlow said the deal called for China to buy an additional $75 billion worth of U.S. manufactured goods over the two-year period. A source told Reuters this week that would include aircraft, autos and car parts, agricultural machinery and medical devices.

Beijing will boost energy purchases by some $50 billion and services by $40 billion, mostly in the financial sector, Kudlow said.

The Reuters source said agricultural purchases will get a $32 billion lift over the two years, compared to a 2017 baseline of U.S. exports to China.

When combined with the $24 billion in 2017 farm exports, the $16 billion annual increase approaches Trump’s goal of $40 billion to $50 billion in annual agricultural sales to China.

China will significantly increase imports of U.S. soybeans after the Phase 1 deal is signed, the Global Times reported on Wednesday, citing comments from a senior Chinese economist at a state think tank.

Wang Liaowei, senior economist at the China National Grain and Oils Information Center, which is under the National Food and Strategic Reserves Administration, also told the paper that imports of U.S. products such as pork and cotton could also see a jump.

Although the deal could be a big boost to farmers, planemaker Boeing <BA.N>, U.S. automakers and heavy equipment manufacturers, some analysts question https://af.reuters.com/article/commoditiesNews/idAFL4N29J26S China’s ability to divert imports from other trading partners to the United States.

“I find a radical shift in Chinese spending unlikely. I have low expectations for meeting stated goals,” said Jim Paulsen, chief investment strategist at Leuthold Group in Minneapolis. “But I do think the whole negotiation has moved the football forward for both the U.S. and China.”

TARIFFS TO STAY

The Phase 1 deal, reached in December, canceled planned U.S. tariffs on Chinese-made cellphones, toys and laptop computers and halved the tariff rate to 7.5% on about $120 billion worth of other Chinese goods, including flat panel televisions, Bluetooth headphones and footwear.

But it will leave in place 25% tariffs on a vast, $250 billion array of Chinese industrial goods and components used by U.S. manufacturers.

U.S. Treasury Secretary Steven Mnuchin told CNBC on Wednesday the deal would boost the U.S. economy, and that Washington could lower tariffs as part of a Phase 2 agreement that would address complex issues such as cybersecurity.

Mnuchin said the U.S. relationship with China was complicated and Washington would continue to raise humanitarian and national security concerns with Beijing in separate discussions. “You have to negotiate different pieces at different times,” he said.

He said Chinese telecom equipment maker Huawei Technologies Co Ltd was not a “chess piece” in the economic negotiations.

China’s Global Times said the Phase 2 discussions may not start anytime soon.

Evidence is mounting that tariffs have raised input costs for U.S. manufacturers, eroding their competitiveness.

Diesel engine maker Cummins Inc <CMI.N> said on Tuesday that the deal will leave it paying $150 million in tariffs for engines and castings that it produces in China.

The company issued a tepid statement of approval on Tuesday: “We believe this is a positive step and remain optimistic that all parties will remain at the table in order to create a pathway to eliminate all of the instituted tariffs.”

Lighthizer and Mnuchin insisted there were no side agreements to remove more tariffs after the November U.S. elections. Mnuchin on Wednesday reiterated that Trump could consider easing tariffs if the two countries move quickly to seal a Phase 2 follow-up agreement.

CORE ISSUES UNTOUCHED

The Phase 1 deal includes pledges by China to forbid the forced transfer of American technology to Chinese firms as well as to increase protections for U.S. intellectual property.

But it stops well short of addressing the core U.S. complaints about China’s trade and intellectual property practices that prompted the Trump administration to pressure Beijing for changes in early 2017.

The deal contains no provisions to rein in rampant subsidies for state-owned enterprises, which the administration blames for excess capacity in steel and aluminum and says threaten industries from aircraft to semiconductors.

It also fails to address digital trade restrictions and China’s onerous cybersecurity regulations that have hobbled U.S. technology firms in China.

China has agreed in the Phase 1 deal to open its financial services sector more widely to U.S. firms, and to refrain from deliberately pushing down its currency to gain a trade advantage, the latter prompting Treasury to drop its currency manipulator label on Beijing.

(Additional reporting by Lisa Lambert, Andrea Shalal, Echo Wang, Alexandra Alper, and Herb Lash in New York, and Se Young Lee and Stella Qui in Beijing; Editing by Simon Cameron-Moore and Paul Simao)

China to ramp up U.S. car, aircraft, energy purchases in trade deal: source

By David Lawder and Andrea Shalal

WASHINGTON (Reuters) – China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years as part of a trade war truce, according to a source, a target that could provide a much-needed boost for planemaker Boeing but is being questioned by U.S. trade experts.

Under the trade deal to be signed on Wednesday in Washington, China would also buy over $50 billion more in energy supplies, and boost purchases of U.S. services by about $35 billion over the same two-year period, the source told Reuters late on Monday.

The Phase 1 agreement calls for Chinese purchases of U.S. agricultural goods to increase by some $32 billion over two years, or roughly $16 billion a year, said the source, who was briefed on the deal.

When combined with the $24 billion U.S. agricultural export baseline in 2017, the total gets close to the $40 billion annual goal touted by U.S. President Donald Trump.

The numbers are expected to be announced at Wednesday’s White House signing ceremony between Trump and Chinese Vice Premier Liu He and represent a staggering increase over recent Chinese imports of U.S. manufactured goods. The size of the targets has raised questions https://af.reuters.com/article/commoditiesNews/idAFL4N29J26S about how realistic they are.

BEYOND THE FARM

Two other sources familiar with the Phase 1 trade deal agreed with the rough breakdown of the purchases, without providing specific numbers.

A spokesman for U.S. Trade Representative Robert Lighthizer’s office could not immediately be reached for comment.

Lighthizer on Monday called the deal a “huge step forward” for U.S.-China trade relations and “a really, really good deal for the United States.” He told Fox Business Network that Beijing’s compliance would be monitored closely.

Lighthizer and his counterparts from Japan and the European Union on Tuesday took aim at China, proposing new global trade rules to curb subsidies that they say are distorting the worldwide economy.

Beijing’s subsidies to state-owned firms are expected to be addressed under a later Phase 2 U.S.-China trade deal, but it remains unclear when those negotiations will begin.

Senate Democratic Leader Chuck Schumer warned Trump in a letter that a weak agreement that failed to address what he called China’s “rapacious trade behaviors” and structural inequities would harm U.S. workers and firms for years to come.

When the Phase 1 trade deal was struck on Dec. 13, U.S. officials said China had agreed to buy $200 billion in additional U.S. farm products, manufactured goods, energy and services over the next two years, compared to the baseline of 2017.

They said they would publish targets for the four broad areas, but would keep details of specific products classified to avoid market distortions.

The $32 billion agriculture increase over 2017 was confirmed by Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs, who spoke to reporters on Monday in Beijing.

Analysts and traders doubted whether China could absorb such a big increase. Relying on the United States so heavily could expose China to price and supply risks, they said.

Large Chinese purchases of Brazilian soybeans and Beijing’s suspension of a plan to implement a nationwide gasoline blend containing 10% ethanol this year have also raised questions about China’s ability to double its imports of U.S. farm products.

Trump had mainly touted the increased farm exports, which would benefit a major political constituency that has been battered by Chinese retaliatory tariffs during his 18-month trade war with Beijing.

Company executives have been waiting eagerly for details of what other U.S. goods China would be buying more of, aside from farm products, after 18 months of tit-for-tat tariffs that have stalled U.S. business investment.

MANUFACTURING CHALLENGES

The $80 billion increase for manufactured goods includes significant purchases of autos, auto parts, aircraft, agricultural machinery, medical devices and semiconductors, said one of the sources, without naming any specific suppliers.

The aircraft would likely be built by Boeing Co <BA.N>, the No. 1 U.S. exporter, whose new sales to China have ground to a halt over the past two years. That would be a welcome boost for the aerospace giant, where shares and earnings have plummeted as its best-selling 737 MAX aircraft remains grounded due to two fatal crashes.

The source providing the purchase figures expressed skepticism about manufactured goods pledges by Beijing since the U.S.-China trade deal does not address any of the non-tariff barriers that have kept these U.S. goods out of the Chinese market for decades, including procurement rules, product standards and subsidies to Chinese state-owned firms.

With Chinese car sales flagging and excess domestic assembly capacity on the rise, China would seem unlikely to purchase significantly more U.S.-built cars. Among the most popular U.S.-built vehicles sold in China are BMW <BMWG.DE> and Mercedes-Benz <DAIGn.DE> sport-utility vehicles.

China also has major industrial policy goals to dominate the very manufacturing sectors in which it has pledged to pump up purchases of U.S. goods, further fueling skepticism.

Many economists and experts are dubious the Phase 1 trade agreement will be implemented as written, despite what U.S. officials describe as an important enforcement clause.

If a U.S. claim of Chinese non-compliance cannot be resolved, Washington would have the right to reimpose tariffs on Chinese goods in proportion to the economic damage alleged. But nothing would preclude China from retaliating, people familiar with the deal said.

Oil traders and analysts were also doubtful whether China would be able to purchase an extra $50 billion of energy products, including crude oil, liquefied natural gas (LNG) and imports of petrochemical raw materials such as ethane and liquefied petroleum gas (LPG).

(Additional reporting by Gabriel Crossley and Hallie Gu in Beijing, and Florence Tan in Singapore; Editing by Simon Cameron-Moore and Howard Goller)

Oil back in positive territory ahead of U.S.-China trade deal

By Ron Bousso

LONDON (Reuters) – Global oil benchmark Brent crude rose to more than $64.50, recovering from four days of declines on easing Middle East tensions, as the United States and China prepared to sign a preliminary trade deal.

Brent crude gained 43 cents, or 0.7%, to $64.63 a barrel by 1507 GMT. U.S. West Texas Intermediate crude futures rose 11 cents, or 0.2%, to $58.20 a barrel.

The outlook for oil demand was supported by the expected signing of a Phase 1 U.S.-China trade deal on Wednesday, marking a major step in ending a dispute that has cut global growth and dented demand for oil.

China has pledged to buy more than $50 billion in energy supplies from the United States over the next two years, according to a source briefed on the trade deal.

The trade war between the world’s two biggest energy consumers had a tangible impact on global oil demand growth last year, said Tamas Varga, an analyst at broker PVM. Varga pointed to 2019 demand growth of 890,000 barrels per day (bpd), compared with initial forecasts of 1.5 million bpd.

“This year, however, the pace is expected to pick up again and average 1.25 million bpd … In the event of a trade deal upward revisions can be anticipated,” Varga said.

Regardless of trade wars, China’s crude oil imports in 2019 surged 9.5% from the previous year, setting a record for a 17th straight year as demand growth from new refineries propelled purchases by the world’s top importer, data showed.

However, gains were limited by easing concern over possible supply disruptions as a result of tensions in the Middle East.

The recent declines came as investors unwound bullish positions built after the killing of a senior Iranian general in a U.S. air strike on Jan. 2, which sent oil prices to a four-month high, said Harry Tchilinguirian, global oil strategist at BNP Paribas in London.

“As geopolitical tensions take a back seat for now, we may see more of the same in the short term,” Tchilinguirian told the Reuters Global Oil Forum.

Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said his country will work for oil market stability at a time of heightened U.S.-Iranian tension.

He also said it was too early to talk about whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, would continue with production curbs that are due to expire in March.

Separately, U.S. crude oil inventories were expected to have fallen last week, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of reports from the American Petroleum Institute (API), an industry group, and the Energy Information Administration, an agency of the U.S. Department of Energy.

(Additional reporting By Jessica Jaganathan; Editing by Louise Heavens and David Goodman)

WHO says new China coronavirus could spread, warns hospitals worldwide

By Stephanie Nebehay

GENEVA (Reuters) – There may have been limited human-to-human transmission of a new coronavirus in China within families, and it is possible there could be a wider outbreak, the World Health Organization (WHO) said on Tuesday.

Coronaviruses are a large family of viruses that can cause infections ranging from the common cold to SARS. A Chinese woman has been quarantined in Thailand with a mystery strain of coronavirus, Thai authorities said on Monday, the first time the virus has been detected outside China.

In all, 41 cases of pneumonia have been reported in the central Chinese city of Wuhan, which preliminary lab tests cited by state media showed could be from a new type of coronavirus, and one patient has died. There have since been no new cases or deaths, Wuhan health authorities said on Tuesday.

“From the information that we have it is possible that there is limited human-to-human transmission, potentially among families, but it is very clear right now that we have no sustained human-to-human transmission,” said Maria Van Kerkhove, acting head of WHO’s emerging diseases unit.

The WHO is however preparing for the possibility that there could be a wider outbreak, she told a Geneva news briefing. “It is still early days, we don’t have a clear clinical picture.”

Some types of the virus cause less serious diseases, while others – like the one that causes MERS – are far more severe.

The U.N. agency has given guidance to hospitals worldwide about infection prevention and control in case the new virus spreads. There is no specific treatment for the new virus, but anti-virals are being considered and could be “re-purposed”, Van Kerkhove said.

With Chinese New Year approaching on Jan. 25, when many Chinese tourists visit Thailand, the WHO called on Thai authorities, the public and holidaymakers to be on alert.

Richard Brow, the agency’s representative in Thailand, said anyone with a fever and cough who had spent time in Wuhan should get checked out by a health worker.

(Reporting by Stephanie Nebehay; additional reporting by Chayut Setboonsarng in Bangkok and Vincent Lee; Editing by John Stonestreet and Pravin Char)