Rise in Acute Respiratory Infectious Diseases, Public Suspects COVID-19 | China Truths

Welcome to China Truths. In this episode, we will bring you the following stories. Official Emergency Alert, Rise in Acute Respiratory Infectious Diseases, Public Questions COVID-19 Outbreak. Another Mega Project Fails in China, Trillions in Investments Wasted. Now, let's dive into the details. It's all covered in today's China Truths. Official Emergency Alert, Rise in Acute Respiratory Infectious Diseases, Public Questions COVID-19 Outbreak. A surge in various viruses is currently overwhelming hospitals in mainland China. Recently, the National Health Commission N.H.C. issued an emergency warning about the rising trend of acute respiratory infectious diseases. Online reports indicate public concern that this may signify a resurgence of COVID-19, with widespread cases of sudden deaths across all age groups. According to Southern Network News, during a press conference on Dec. 5, a researcher from the Chinese Center for Disease Control and Prevention stated that while acute respiratory infectious diseases are still at a relatively low prevalence, cases are rising, particularly among the 0 to 14 age group. The researcher noted that monitoring data show common pathogens detected among children aged 0 to 4 include rhinovirus, mycoplasma pneumoniae, parainfluenza virus, adenovirus, and respiratory syncytial virus. For those aged 5 to 14, rhinovirus, mycoplasma pneumoniae, influenza virus, and parainfluenza virus are most prevalent. A Sina article from Nov. 25 reported a noticeable rise in illnesses among children, with pediatric hospitals overcrowded. For instance, a 5-year-old girl in Zhengzhou, Hunan, was diagnosed with fulminant myocarditis, initially mistaken for a common cold. After being rushed to the ICU, she narrowly survived. In Guangdong, an 11-year-old boy suffered severe myocarditis following a fever, his heart stopping for 52 hours before recovering after 37 days of intensive care. In addition to children, adults are also severely affected. Online comments from Jiangsu reported widespread coughing and fevers, while Jiangsu residents noted significant cases among individuals in their 50s and 60s. Sichuan and Shandong residents expressed frustration over the highly resistant nature of this year's common cold viruses, causing prolonged symptoms. Videos posted on Dec. 4 on platform X by user PoetryAndFarAway reveal overcrowding at emergency departments in Beijing, with daily patient counts reaching 800 to 900, predominantly children. Similar scenes are reported in hospitals across Tianjin, Sichuan, Zhejiang, and Guangdong. Some suspect this surge is linked to a new variant of COVID-19 rather than the flu, as the symptoms and outcomes align with previous outbreaks. Reports of sudden deaths across age groups, including young adults in their 20s and 30s, have fueled these speculations. Residents claim the government is downplaying the severity, as seen during earlier waves. An October report cited rising deaths, including cases where individuals collapsed while riding electric scooters. Many of these deaths were attributed to sudden cardiac or cerebral events, often linked to respiratory infections. China is currently battling a range of highly infectious viruses. In recent weeks, norovirus outbreaks have been reported among students in Xi'an, Shaanxi, Puerh, Yunnan, and Shiyan, Hubei. With no specific treatments available, the Chinese National Disease Control Bureau has issued emergency warnings. In Guangdong, over 7,000 new flu cases were reported in October alone, characterized by severe symptoms and significant risk of complications or death. However, the Chinese government's history of withholding information has raised public concern about the true severity of these outbreaks. Another mega-project fails in China, trillions in investments wasted. A surge of new energy vehicle, NEV, startups emerged in China in 2014, inspired by Tesla's success. With massive subsidies and favorable policies, the Chinese government actively promoted the NEV industry. However, a decade later, this grand car-building movement has left a trail of unfinished projects and wasted investments totaling trillions of yuan. Yicai reported that 2014 marked the beginning of China's new car-making forces. Companies such as NIO, Li Auto, Xpeng, and Singulato were established, alongside many startups by former traditional auto executives. By 2019, more than 60 NEV startups populated the market. The Chinese government supported the NEV industry with fiscal subsidies, tax breaks, infrastructure investment, and regulatory measures, making China the world's largest NEV market. However, as of 2024, most NEV companies have gone under. Data from the China Automotive Technology and Research Center indicates only eight startups— Li Auto, Leap Motor, NIO, Xpeng, Xiaomi, Hozen, Jishu, and Heiken—remain active, though some struggle. For example, Hozen has accumulated losses of US$2.5 billion over three years, and Heiken operates with a skeleton staff. In the past decade, planned NEV production capacities reached 13.55 million units, with investments totaling US$94.2 billion. Of these, 10.3 million units' production capacity and US$83.3 billion in investments were abandoned, while only 3.89 million units came to fruition. In Zhejiang province, of over 2 million planned units, only Leap Motor remains operational, while WM Motor, Enovate, and Bowning exited the market. In Jiangsu province, of eight city-level NEV startups, only Li Auto thrives, while Byton, Selene, and Hi-Fi have gone bankrupt. In Jiangxi province, of 900,000 planned units, only 450,000 were achieved. Companies like Aiways, Levdio, and Cherry Jingkang failed. Radio Free Asia interviewed financial commentator Kai Shenkun, who attributed the overproduction crisis to insufficient domestic demand and barriers to exports. He noted, Local governments encouraged NEV projects for economic growth, offering incentives to attract companies, even without market fundamentals. This led to overcapacity, with many firms failing due to poor quality products and lack of technical expertise. An automotive sales expert identified government subsidies as a major driver for speculative ventures, saying, Some companies never made cars but sought subsidies. Even when cars were produced, follow-up funding or quality issues led to bankruptcy. While subsidies fueled excessive expansion, local governments often provided free land and facilities to manufacturers. However, many projects turned into financial losses for both companies and local authorities. Nikkei Asia reported that China's NEV production capacity far exceeds demand, with overcapacity projected to reach 20 million units by 2025. This surplus has triggered a global price war as Chinese firms aggressively target international markets. Despite plans for over 36 million units of annual NEV production capacity by 2025, domestic sales are forecast at only 17 million units, leaving nearly 20 million units in surplus. To address overcapacity, Chinese NEV manufacturers have ramped up exports, particularly to Europe and Southeast Asia. NEV exports increased 78 percent in 2023 to 1.2 million units, with a forecast of 3.5 million units in 2024. However, this aggressive export strategy has raised concerns among global competitors. In September 2024, the U.S. imposed a 100 percent tariff on Chinese EVs and a 25 percent tariff on EV batteries. The EU completed a yearlong anti-subsidy investigation in October 2024, resulting in five years of countervailing duties on Chinese NEVs. Tariffs ranged from 17 percent for BYD to 35.3 percent for non-cooperative firms. The rise and fall of China's NEV startups over the past decade exposed critical flaws in government planning and industry execution. Experts view the mass failures as a stark warning for the NEV industry and broader policy strategies.