No.26, February 13, 2020

In order to contain the novel coronavirus, personnel of Taiwan's Central Epidemic Command Center boarded a quarantined cruise ship and collected medical samples.
(Photo from: United Daily News)

● Featured News: 2,400 Passengers on Aquarius Cruise Ship: We Can Go Home!

● Featured Editorial: Shortages in Face Mask and Tissue Paper Push Public Confidence to Brink of Collapse
● Featured Opinion: Coronavirus Brings on Economic Crisis
● This Week in Taiwan: Other Important Events This Week

2,400 Passengers on Aquarius Cruise Ship: We Can Go Home!

United Daily News, February 9, 2020

Good news has arrived! The Central Epidemic Command Center boarded the Aquarius Starship yesterday afternoon for quarantine inspection where it employed 360 inspectors and screened more than 2,400 people. The inspection was completed in approximately nine hours. While there were plans in place for the worst-case scenario, namely, a 14-day quarantine onboard, all tested negative and were released. Minister of Health and Welfare Chen Shih-chung immediately boarded the ship to announce the news and more than 1,700 passengers disembarked and returned home at 9 o'clock in the evening.

 

To prevent the spread of the coronavirus, Taiwan announced on February 6th that "all international cruise ships are prohibited from calling at our ports." The Aquarius Star left Keelung on the 4th and almost became an orphan at sea, in and out of Naha twice. Yesterday it finally arrived at Keelung Port where the command center led the team to board the ship for quarantine.

 

In order to speed up the screening and quarantine time, the Command Center dispatched 25 quarantine personnel and medical staff inspection, including six doctors and eight paramedics. A six-line collection and inspection station was set up on the seventh floor of the cabin. Vice Premier Chen Chi-mai announced 4 PM yesterday that all specimens were collected and awaiting the results of the test.

 

Minister Chen Shi-chung twice explained the situation of the screening. It was originally expected that only 70 to 100 people would need to be inspected. The target was the high-risk passengers, such as those with a travel history to mainland China, Hong Kong, and Macau, as well as foreigners with fever or respiratory symptoms. The number of inspections exceeded the original expectations to as many as 120.

 

Minister Chen explained that exceeding the original screening expectation was to accommodate a widened range of screening criteria, and even passengers with a slight fever of only 37.3 degrees were also included in the inspection. Director-General Chou Jih-haw of the Centers for Disease Control said that in order to speed up the inspection, the Kunyang laboratory team was expanded to 25 persons.

 

Because the number of inspectors exceeded expectations, the command center disclosed privately that it was impossible to follow the original plan and announce the inspection results at 9 o'clock in the evening — and that it may become necessary to wait until 10 o'clock or even 1 a.m. before the report can be released. But with the combined efforts of everyone involved, the good news came out at 8:30 PM. The inspection results were released, all of which were negative. Chen immediately boarded the ship and broadcasted the results with the words: "we can go home." Thousands of passengers on the ship cheered, even media reporters about 100 meters away from the west bank of the port of Keelung heard the deafening sounds of celebration.

 

Chen announced at a press conference at 9 PM last night, "our mission is complete." However, the travelers were warned that independent health management would be needed for 14 days, and to limit their time outside and wear surgical masks when doing so. As for the twenty-nine foreign tourists, they will travel and leave Taiwan as they originally applied with no restrictions.

 

Chen said that this battle showed that Taiwan's quarantine capabilities are first-rate. In order for our fellow citizens to return home in good health, the entire team worked together and boarded the ship at about 12:30 PM and completed the mission at 9 PM. A clear demonstration of the Taiwan medical and police team's efficiency. Within a total of no more than eight hours, the quarantine inspection was completed, faster than expected.

 

Chen said that the battle was perfectly fought but that more will be forthcoming. Director Shih Chung-liang of the Director of Medical Affairs, MOHW, boarded the ship yesterday as the floor quarantine commander. He admitted that to perform this impossible task, the command center repeated several exercises and has prepared for the worst. The inspection and preparation of plan B was conducted at the same time, with the chemical unit of the military on hand at the scene.  

 

Another luxury cruise, the "Diamond Princess," was not so lucky.  

 

A male Hong Kong tourist boarded the ship on January 20, 2020, and disembarked on January 25 in Hong Kong. On February 1st, he was confirmed to have been infected with the new coronavirus. When the cruise ship returned to the port of Yokohama, Japan on February 3, all 3,711 tourists and crew on board were forbidden to disembark and were quarantined on board for 14 days.

 

As of February 13, 218 passengers have been diagnosed with the virus, making this the most densely diagnosed set of cases globally outside of China.

 

The ship had docked at Keelung Harbor in Taiwan on January 31 — with 2,694 passengers disembarking to visit 50 scenic spots across Keelung and Taipei. The Taiwan authorities sent a newsletter via the cell broadcast warning system for the first time the night of February 7 with maps where the tourists have visited, reminding people who have visited those locations from 6 AM to 6:30 PM on that day to perform independent health management until 2/14.

 

The "Diamond Princess" departed Yokohama on January 20 and traveled to Kagoshima on January 22, Hong Kong on the 25th, Da Nang, Vietnam on the 27th, Halong Bay on the 28th, Keelung on the 31st, Naha on February 1 and finally returned to Yokohama on February 3. The cruise ship had undergone preliminary quarantine in Naha, but was asked to do an “offshore quarantine" for 14 days after arriving in Yokohama on February 3.

 

According to Asahi TV, the passengers of the Diamond Princess included 1,285 Japanese, 470 from Hong Kong, 425 Americans, 215 Canadians, 40 British, 25 Russian, 20 Taiwanese, 15 Israeli, and 13 from New Zealand.

 

From: https://udn.com/news/story/120940/4331495

Shortages in Face Mask and Tissue Paper Push Public Confidence to Brink of Collapse

United Daily News Editorial, February 8, 2020

 

As the outbreak of coronavirus keeps spreading, mainland China has imposed lockdown on cities one after another. While the confirmed cases of coronavirus are also growing in Taiwan, it has become more and more difficult for local people to buy surgical face masks. This situation has made the people of Taiwan increasingly nervous. Recently, people have lined up in front of pharmacies trying to buy hard-to-get facial masks. Not only that, people are also rushing to supermarkets to grab whatever toilet paper, tampons and diapers that they can buy. Despite that retailers have assured customers that they have plenty in stock, the Ministry of Economic Affairs have posted numerous statements dispelling rumors, and Premier Su Tseng-chang has asked people to calm down, even President Tsai Ing-wen has helped clarify the situation, the shelves in supermarkets quickly become empty and need to be restocked constantly. It is clear that the people are pessimistic about the virus control and confidence in government is on the brink of collapse.

 

This is not the first time that Taiwan experienced “the toilet paper panic.” Two years ago, there was a similar panic caused by inappropriate marketing practice of one proprietor, luckily the problem was solved within weeks. This time the panic started in Hong Kong. Since Hong Kong’s basic commodities are imported from mainland China, the Internet rumors about factories to be shut down in China pushed the people in Hong Kong to go on a shopping spree for toilet paper. The panic in Hong Kong prompted the already nervous Taiwan. Friends, relatives and groups in social media began to spread the information that “all raw materials are used to produce facial mask, soon toilet paper and tampons will run out and the price will go up.” As housewives heard the news through the grapevine, crowds started to appear in shopping malls to bulk buy every toilet paper and tampon. The regular shoppers saw this and quickly jumped in to buy whatever is left. As a result, before the end of “the facial mask panic,” “the toilet paper panic 2.0” has again started.

 

The Ministry of Economic Affairs (MOEA) is making an effort to clarify the rumors. Many people have received a “Big Mistake” sticker on their cell phones, emphasizing the raw materials for making facial masks are different from those for toilet paper and their place of origin is not mainland China, so our production is sufficient to meet domestic needs. Premier Su even advised everyone to learn from the last toilet paper panic not to spread this unwarranted rumors and stock up toilet paper, tampons and diapers at home, merely wasting money. President Tsai also asked everyone to help clarify rumors and assured that the production of facial masks “will not” dry up the raw materials for making toilet paper.

 

As coronavirus is spreading rapidly, it is understandable that any trivial information will trigger natural self-defense instinct and make people respond accordingly. The government must calm the general public and maintain social stability in order to win this battle to control the coronavirus. However, many people still jump on the purchase wagon while viewing the “no worries over supply” sticker on their cell phones. The fact that it is still hard to buy facial masks today has made the government promise no longer credible. For people who lined up to buy facial masks and came up empty-handed, a few rolls of toilet paper at least could help calm some of their worries. The question is who has shaken the people’s confidence in virus control and eroded the public trust in government?

 

The MOEA claims that there is “nothing to worry about” the supply of toilet paper. Yet to many people, President Tsai and Premier Su both assured that there were sufficient facial masks, but the long queues before the facial mask factories and convenience stores clearly expose that the government is bragging. Furthermore, the government’s information on coronavirus and the anti-virus measures have been contradictory, inconsistent and even chaotic, the general public do not know what to follow. In other words, the government itself is the originator of the facial masks panic.

 

In fact, right after an official mentioned by accident that “we can’t produce enough facial masks,” revealing there is problem in production, the MOEA quickly made correction and said the supply of raw materials had no problem and the production would reach 10,000 masks a day in March. But the fact remains that the public still need to make extra effort to wait in long lines at pharmacies to buy facial masks. How many people still believe the supply assurance from the government? Take the issue that whether the public should wear facial masks as an example, not only President Tsai, former President Ma Ying-jeou, and Taipei Mayor Ko Wen-je have very different opinions, the government advisory has also changed from “wash hands frequently and wear facial masks” to “healthy people don’t need to wear facial masks.” Another advisory asking people to “wear facial masks in crowded and closed space” has also changed to a short film telling people “no need to wear facial masks on the Metro.” When the public learned that returning Taiwanese businessmen from mainland China had confirmed cases of coronavirus; a person quarantined at home for suspected coronavirus infection went out to shop in a convenience store; and the passengers of the now-quarantined Diamond Princess cruise ship went on sightseeing tours across northern Taiwan and the Central Epidemic Command Center had to issue emergency warnings, who dare to believe the government endorsement saying that there is no need to wear facial masks?

 

The efforts and professional performance of the Taiwan anti-coronavirus team are truly remarkable. However, the government’s counter measures are out of place and chaotic at times, which have shaken the people’s confidence in coronavirus control and eroded the public trust in government. Despite that Premier Su sternly swore to punish those responsible for the anti-virus loopholes, the government has been repeatedly creating loopholes in people’s confidence and social trust. As the spread of coronavirus continues, it is critically important to close the loopholes of people’s confidence in virus control and public trust in government.

 

From: https://udn.com/news/story/7338/4331379

The coronavirus has triggered widespread panic, affecting financial markets everywhere. Many stock indices have fell sharply.
(Photo from: China Times)

Coronavirus Brings on Economic Crisis

By Shih Chi-ping
China Times, February 8, 2020

 

At the beginning of 2020, the coronavirus stemming from China’s Wuhan, Hubei Province, has been like a giant black eagle, unexpectedly covering the whole of China in an incredibly short time, and also spreading speedily to the rest of the world, so fast that everybody is caught off guard, so serious that all countries are frantic.

 

Although still under development, according to observation of the current situation, it is almost ensured that the coronavirus’s assault on China and on the global economy will surpass the destruction of any major crisis from World War II until now, including the oil crisis of the 1970s, the Asian financial crisis of 1990, the Severe Acute Respiratory Syndrome (SARS) epidemic of 2003, to the global financial crisis of 2008, unless the epidemic can be largely controlled within a short amount of time, due to three key reasons.

 

First, in contrast to the burst of the demand bubble with the 1997 Asian financial crisis and the 2008 global financial crisis, the disaster that the coronavirus epidemic will bring upon industries and the economy is a huge supply side destruction. The bursting of the demand side bubble is just a bursting of the original superficial prosperous facade, letting the economy’s original “empty need”, upon being burst, immediately return to its old shape, returning to its original actual need level, which is far lower than the empty need. Due to the huge impact, coming at the speed of lighting, all the original economic relations and economic activity were forced to go through a painful adjustment. The bigger the bubble, the longer the adjustment period, and the bigger the price of adjustment as well. But one must see that the original supply side structure and foundation is actually all there, not subjected to fundamental and actual destruction. After completing the adjustment process, or experiencing huge technical breakthrough and innovation during the adjustment process, the whole economy produces new demand, and hence can speedily recover in vitality.

 

This time the effect of the coronavirus is entirely different; it will cause the total destruction of the whole supply side structure and supply chain. Under the extreme panic, governments across the world have demonstrated an almost zero flexibility block tactic when it comes to transportation between China and countries. Policies like this, even though maintained for a not long period of time, will already have a suffocating impact on corporations, no matter it is in production industry or service industry. Customers will not come, capital chain is ruptured, parts and components not supplied, finished goods cannot be sold, one can imagine the severity.

 

Second, different from the 2003 SARS epidemic, the scale of China’s economy was far smaller than the large size it is now, easily demonstrated by some figures: In 2003 China’s gross domestic product (GDP) was only at 14% that of the United States. Seventeen years later today, the Chinese GDP is already at roughly 70% that of the United States. In 2003 China’s GDP was ranked fifth in the world; 17 years later today, China’s GDP is ranked second in the world. From another perspective, currently 30% of the propeller of global economic growth is from China, if the engine of China’s economic growth slows or extinguishes, it will not be good for the global economy either.

From a supply and demand perspective, China currently is the world’s biggest factory, and also the world’s biggest market, not to mention a trade partner to more than 100 countries. The American Trump government want to somewhat “disconnect” with China, this is a good testing opportunity. Try disconnecting, and they will know how it feels.

 

Finally, ever since the end of the Second World War, besides the occasional crisis, the global economy has generally seen a long term prosperity, mainly due to “globalization”, with the United States as the biggest benefactor of globalization. Unexpectedly, after entering into the 21st century, due to numerous reasons, globalization is no more, but anti-globalization has appeared. Even more unexpectedly, under the general trend of “anti-globalization”, “blocking” has appeared due to the Coronavirus, with specific blocks developing from the destruction of supply demand structures between countries. Even further, China’s current trend also displays a “micro blocking” scenario, between province and province, between city and city, until what extent unclear right now. Hopefully the black swan comes fast and leaves fast.

 

(The author is a senior commentator from Phoenix Hong Kong Channel.)

 

From: https://www.chinatimes.com/opinion/20200208002791-262105

February 2: In order to avoid further outbreaks of coronavirus, public schools in Taiwan are postponing start of classes two weeks until February 25, and summer break will be shortened accordingly by two weeks, ending earlier on July 15. This is the first time that winter and summer break schedules for public schools have been shifted in Taiwan’s history. Parents of children under age 12 may apply for a 14-day leave for epidemic prevention. Employers are expected to grant leave and not consider it absence. Employers may decide whether such leave will be paid.

February 4: The first group of Taiwanese businessmen and their family members returning from China’s Wuhan total 247. They returned by special flight to Taiwan late on February 3, and all personnel were quarantined immediately after getting off the plane. Five patients with symptoms were sent to the hospitals, and people without symptoms were transported by bus to three quarantine locations to isolate for 14 days. On February 4, it was announced that one of the patients was diagnosed with the coronavirus, brining the number of confirmed cases in Taiwan to 11. (As of February 13, there are 18 cases confirmed in Taiwan.)

February 6: Taiwan launched its rationing system for surgical face masks. People may bring their health insurance cards to some 6,000 pharmacies across Taiwan to purchase face masks at NT$5 (about US$0.17) a piece. Since the implementation of the rationing system, there remain long queues at pharmacy entrances on a daily basis.

February 6: Taiwan has suspended travel from mainland China. While Hong Kong and Macao people may still enter Taiwan, they must be quarantined for 14 days at one location and not travel elsewhere. Foreigners who have traveled or resided in mainland China, Hong Kong, and Macao within 14 days (after January 24) are asked to postpone entering Taiwan. Taiwan’s Mainland Affairs Council also issued a first-level travel warning, asking Taiwanese citizens not to travel to the Chinese mainland.

February 8: Following the announcement on February 6 that international cruise ships may not pull into Taiwan’s ports, cross-strait business, travel, and postal services were suspended on February 7. On February 8, Taiwan announced suspension of cross-strait passenger transport beginning February 10 until April 29. For cross-strait flights, only Beijing, Shanghai, Xiamen, Chengdu, Hong Kong, and Macau remain available destinations.

Taiwan Weekly is a newsletter released every week by Fair Winds Foundation and Association of Foreign Relations that provides coverage and perspectives into the latest developments in Taiwan.

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