FirstFT: China accused of undercounting Covid deaths

Good morning. The World Health Organization has accused China of underrepresenting the severity of its coronavirus outbreak and the real number of deaths, in its strongest rebuke yet of Beijing’s handling of the pandemic.

“We believe the current numbers being published from China underrepresent the true impact of the disease in terms of hospital admissions, in terms of ICU [intensive care unit] admissions, particularly in terms of deaths,” Mike Ryan, head of the WHO’s emergencies programme, told reporters.

Beijing’s definition of Covid-19 death, which was changed last month, was “too narrow”, Ryan said, as he called on Beijing to offer greater transparency on the extent of the surge in cases since president Xi Jinping brought an abrupt end to the draconian zero-Covid system of controls.

Internal Chinese government estimates suggested that hundreds of millions of people may have been infected by late December. Yet China had as of Tuesday officially reported only 5,258 deaths from Covid nationwide, including 25 since December 1, despite projections of as many as 1mn deaths during this wave. Some regions have reported zero deaths despite an explosion in cases.

A growing number of China’s celebrities have been lost to Covid-19, from academics to opera singers, whose deaths have complicated the government’s efforts to minimise the scale of the unfolding outbreak sweeping across the country. Want more on China? Explore our China hub for the latest news and analysis.

Five more stories in the news

1. US to send delegation of trade and economic officials to Taiwan The office of the US trade representative has announced that Terry McCartin, its top official responsible for trade with China, would lead a US delegation to Taiwan from January 14-17 as the administration of Joe Biden seeks to bolster America’s commercial relationship with the island.

2. China and Philippines vow to have ‘friendly consultations’ Chinese president Xi Jinping and his Philippine counterpart Ferdinand Marcos Jr agreed to strengthen economic ties and handle maritime issues in the South China Sea through consultations, as Beijing seeks to salvage a relationship undermined by their territorial dispute. After reports that China had started building up unoccupied land features in the South China Sea, the meeting is seen as a test for whether Manila can bolster ties with Beijing.

3. McCarthy loses sixth Speaker vote despite Trump intervention Kevin McCarthy’s dreams of becoming Speaker of the House were fading fast, as the California congressman lost a sixth ballot amid sustained opposition within his own party. Despite an eleventh-hour intervention from former president Donald Trump encouraging Republicans to support McCarthy, 20 Republicans voted against him in the fifth ballot.

4. Salesforce to cut 10% of staff Co-founder and chief executive Marc Benioff blamed the retrenchment on worsening business conditions, but admitted to misreading the strength of demand as the US software company becomes the latest tech group to reverse a hiring binge in the face of slowing demand and growing unrest on Wall Street.

5. Japan’s nuclear restart at risk Japan’s ambitions to reboot its nuclear industry risk being set back by a shortage of engineers and manufacturing capacity that has atrophied in the decade following the Fukushima nuclear disaster. Japan sourced about a third of its electricity from 54 nuclear reactors before the Fukushima disaster. Now, only nine are operational.

The day ahead

Economic indicators S&P’s purchasing managers’ index figures will be published for Australia, China, Hong Kong and Singapore today. Singapore’s retail sales figures from the Department of Statistics are also due today.

Funeral of former Pope Benedict The funeral of the first pontiff in 600 years to resign from his post, who died Saturday at the age of 95, will be held in the Vatican today. Pope Francis will preside over the event.

French inflation figures While inflation is falling elsewhere in the eurozone, figures out today in France are expected to show a small uptick in price growth. French inflation is expected to peak in the first quarter of 2023, according to the French central bank.

What else we’re reading

The new Gulf sovereign wealth fund boom From Qatar and Saudi Arabia to the United Arab Emirates, the Gulf is increasingly viewed as one of the world’s last remaining sources of abundant capital. For many of those beating a path to its door, there is one thing on their minds — striking deals with sovereign wealth funds — as the region enjoys its first petrodollar-fuelled boom in a decade.

• Opinion: A new world energy order is taking shape, writes Rana Foroohar, following President Xi Jinping’s visit to Saudi Arabia last month.

Chinese battery makers strengthen grip on global supply Chinese battery manufacturers have extended their dominance over global supply, with the top two producers reaching a combined market share of 50 per cent, and leaving South Korean and Japanese rivals lagging behind.

Russian army faces backlash over conscripts’ deaths The killing of scores of Russian conscripts in a Kyiv-led missile attack on their barracks in occupied eastern Ukraine has rekindled recriminations in Moscow over the conduct of the war — and raised fresh questions over the military’s capacity to learn from its mistakes.

Israel’s rightward shift stokes alarm over West Bank stability Israeli proposals for far-reaching changes to the administration of the occupied West Bank prompted warnings even before Benjamin Netanyahu officially returned as prime minister last week. But an intervention by the head of the Israel Defense Forces underscored how those anxieties have reached the top echelon of the Jewish state’s military.

Resurgent Chinese travel would reset nation’s global image On top of the direct financial impact, the return of Chinese travellers to the global stage could have a meaningful effect on businesses and contribute to a subtle geopolitical nudge. It’s not only the spending power of tourism that matters — views of China will change, writes Leo Lewis.

Take a break from the news

The London-based Korean-American chef, restaurateur and author Judy Joo shares her gastronomic guide to New York, including the Jazz Club at the new Aman hotel and some old favourites.