FirstFT: China grapples with rapidly spreading Covid infections

Covid-19 is spreading rapidly through China’s biggest cities, leading to widespread medicine shortages and exposing Beijing’s lack of preparation after authorities reversed strict pandemic controls.

Residents of Shanghai, Shenzhen and other cities reported that pharmacies have sold out of fever medicine and Covid tests, while social media images contrast long queues outside Covid clinics with otherwise empty streets.

The outbreak has brought normal life to a halt just a few weeks after Beijing abandoned zero-Covid controls — which included lockdowns, quarantines and mass testing — with little forewarning.

In many cities, residents were sick or staying at home to avoid infections. Shanghai and several other cities announced they would move classes online for most students starting Monday.

The outbreak has thrown supply chains into chaos. In the southern city of Shenzhen, a pharmacy owner said his store had run out of cold and fever medicine. “I have been asking for supplies for two weeks, but the factories are still postponing my orders,” he said, adding he planned to pick up any supply himself when it became available. “There are no drivers . . . they are all testing positive.”

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Five more stories in the news

1. Argentina win epic World Cup final against France on penalties Argentina have been crowned World Cup champions after beating holders France in a penalty shootout, as Qatar hosted the most memorable final in recent history. The victory — their first since 1986 — gave Argentina their third World Cup win.

2. Brussels agrees details of world-first carbon border tax EU member states finalised the details early yesterday for a deal on the world’s first major carbon border tax, despite claims from the bloc’s key trading partners that the levy creates protectionist trade barriers. The deal is a central part of the EU’s strategy to reduce its carbon emissions to net zero by 2050.

3. Tunisian election turnout sinks after Kais Saied’s power grab Tunisians have stayed away from the polls in record numbers in the first parliamentary election held in the country since a power grab by Kais Saied, the populist president, in July 2021. Yesterday, Saied’s opposition called for the president to step down after just 8.8 per cent of registered voters cast ballots in Saturday’s vote.

4. BlackRock weathers political storms to pull in more funds than its rivals Even as the world’s largest asset manager has come under attack from both the left and right over its approach to sustainable investing, the firm pulled in much more money from US retail investors than its rivals so far this year, ending up with $144bn in net new money at the end of November

5. Musk seeks to sell Twitter shares in search of new funds The head of Elon Musk’s family office has approached investors who helped the billionaire buy Twitter for $44bn in October to try to raise new funds as the social media company continues to bleed cash and faces heavy interest payments on its debts.

The day ahead

WTO General Council meet The World Trade Organization begins its General Council meeting in Geneva, Switzerland. They will convene today and tomorrow in their last meetings of the year.

Corporate results Nike releases its Q2 results today.

Economic indicators The EU will release October construction output data today, the UK its CBI industrial trends survey, and the US its NAHB housing market index. Additionally, Bundesbank releases its monthly economic outlook report for Germany.

UK’s World Service turns 90 The World Service, a broadcaster owned and operated by the BBC with government funding via the Foreign Office, launched on December 19, 1932.

What else we’re reading

How will Israel’s most rightwing government wield its power? Benjamin Netanyahu has appointed Itamar Ben-Gvir as Israel’s new national security minister. The radical ultranationalist will soon oversee the nation’s police. Supporters say Benjamin Netanyahu’s coalition will reshape and strengthen the country. Critics fear it might tear at the fabric of the state.

AI breakthrough ChatGPT raises alarm over student cheating Academics, consultants and cognitive scientists are urging universities to develop new modes of assessment to safeguard against the use of sophisticated artificial intelligence programs such as ChatGPT to write essays. The new technology poses a threat to academic integrity and has led to a debate over better ways to evaluate students.

How Putin’s technocrats saved the Russian economy Once thought of as reformers, Russian president Vladimir Putin’s economic confidants have become his enablers. Despite their initial opposition to the invasion of Ukraine, they have used their expertise and tools to soften the blow of western sanctions and hold Russia’s wartime economy together.

The tech ‘nepo babies’ are coming Tech is still a fairly young industry, but tech founders may be able to pass on their companies to their offspring using a structure called dual-class shares. Founders have continued to push for dual-class shares, even though companies with perpetual dual-class shares tend to underperform in the long term.

Ho, ho, ho, it’s off to work we don’t go Christmas has always been a distracting time, writes Pilita Clark, but this year has been worse. Today, December 19, is when many workers in the Western world tend to mentally check out from their job duties.

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