Category China

The Spread of the Coronavirus does seem to be Slowing

Source: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

This graph is from Johns Hopkins. I gather the figures are only as good as the reporting from China, and that I have not looked into.

The top line is the number of coronavirus cases in Mainland China (People’s Republic of China). The next line is the “Total Recovered” which is reported at 21,250 out of 77,917 cases (and 2,361 deaths). The bottom line of “other locations” (meaning outside of China)

A related news article is here:  China reports fall in new coronavirus cases but concerns grow over rising global spread

Coronavirus update

Well, I was concerned about the Coronavirus from the start, and so far, it unfortunately seems to be living up to my concerns. This morning, according to the reported stats…..there have been 24,607 reported cases (which is about 3 times as many as reported SARS cases) and 494 deaths. The concern and question is about the trends….is the disease expanding linearly or geometrically? Here is the latest graph from the John Hopkins University site:

This is from this site: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

Of course this is assuming that the reported statistics are correct. There is some question about that: https://www.yahoo.com/news/china-arrested-doctors-warned-coronavirus-111252311.html

To summarize:

  1. Last December eight doctors and medical technicians became concerned about a developing SARS-like disease. They were arrested on 1 January 2020 for having “spread rumors.”
  2. There is still on-going censorship efforts concerning the virus in China.
  3. Not discussed in this article, but there are people claiming there could be over 75,000 cases: https://www.iflscience.com/health-and-medicine/coronavirus-cases-in-wuhan-could-be-over-75000-research-model-reveals-/

The tradition is that these communist governments tend to initially try to cover-up and minimize these disasters (i.e. SARS, Chernobyl). Not that democratic governments also don’t sometimes try to minimize the scale of these problems, but the free press does help keep them truthful.

 

 

Interesting Article on the Chinese Government

Interesting article on the Chinese government and the Chinese public perceptions of it. From the New York Times: Virus Crisis Exposes Cracks in China’s Facade of Unity

The main point of the article is that the government has already come under criticism for the crisis that has developed in Wunan. One post on a social media site stated:

The current system looks so vibrant yet it’s shattered completely by a governance crisis. We game up our rights in exchange for protection. But what kind of protection is it? Where will our long-lasting political apathy lead us?

“The post was shared over 7,000 times and liked 27,000 times before censors deleted it,” according to the article.

This reinforces the argument I was making in the fourth point, Internal Stability in China, in yesterday’s post.

Map of Coronavirus

This link leads to a map of the Coronavirus. It is from Johns Hopkins University: https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

As of 11:00 PM 28 January they were reporting 6,057 confirmed cases and 132 deaths.

 

P.S. As of 9:00 PM 29 January they were reporting 7,783 confirmed cases and 170 deaths. To date, no deaths have been outside of China. Below is a graph of “total confirmed cases” from that site:

P.P.S. As of 9:30 PM 30 January they were reporting 9,776 confirmed cases and 213 deaths. To date, no deaths have been outside of China. Below is a graph of “total confirmed cases” from that site:

The Snowballing Effects of a Virus?

Again, this is not my area of expertise, since I’m mostly into Pfizer stock speculation and such, but as the Coronavirus does not seem to be going away any time soon, probably worthwhile to look at the effects of such a disease if it continues to expand, beyond the issues of health and mortality.

Economic Effects in China: Right now, around 60 million people are in partial or full lock down. The current population of China is over 1.4 billion, so this is 4% of the population. So lets say that their economic activity is reduced by at least 20% (it may be more). Let us say this is a ripple effect that impacts three times that amount of people (as they certainly trade with others). The most immediate economic impact of the virus is on consumption and travel. So 0.12 x 0.8 = 0.96 or basically a 1% decline in the Chinese economy/growth rate. The Chinese economy is growing at around 6% a year. Now, if this virus lasts for three months, it is simply a blip on the charts. If it lasts the better part of a year, we will see a reduction in the growth rate of the economy. On the other hand, if the virus continues to spread and more people and cities are on lock down, then the economic impact could be more significant.

Note: These are all the companies who have shut down operations….

International Economics: The Chinese economy now makes up 16% of the world economy. They are certainly the manufacturing hub in many industries (for example, my first Kursk book was printed there). So, any disruption in the Chinese economy will result in a decline worldwide. These fears were amplified this last Monday morning when the DOW declined by over 500 points, which is almost a 2% drop. Now it was recorded somewhat and as of 1:00 PM on Monday was at 337 (1.16%). Still this shows the economic impact on the markets. Of course, the market going down 1 or 2% does not mean the economy is in decline, but it does indicate that this is a global concern.

Oil Prices: U.S. oil prices were down on Monday morning by nearly 2% also to $53.13 a barrel. Now oil prices directly affect consumers as we can see the fluctuations from day to day at the gas pump, but…..if also significantly impacts the economy of Russia, which relies heavily upon taxes on oil and natural gas for its budget. As of 1 PM on Monday, the exchange rate for rubles to dollars went from 62 rubles to 63 rubles.

Internal Stability in China: Keep in mind that China had a major internal unrest incident in 1989 with Tiananmen Square. They have been hesitant since then to run over people with tanks. More to the point, the continued growth of the Chinese economy has dampened much of the political and internal unrest, and will probably continue to do so as long as the economy continues to grow. Many people (and I am one of them) does consider that the development of a capitalist economy under control of a communist regime is a fundamental contradiction that at some point will lead to political unrest. This was the case 30 years ago, and if the economy stagnates or decline, I have no doubt will be the case again. Added to that, right now there has been an extended pro-democracy protest in the Chinese city of Hong Kong that has not been resolved. Is this an isolated case, being a former British colony; or is it the first of many others? I do get the sense that the stability of China is not guaranteed and could be quickly become an issue if the economy declines.

Internal Stability of Russia: The Russian economy is tied to oil prices, maybe not as much as Iran and Saudi Arabia, but enough that this is a big issue. In 2012 oil, gas and petroleum products account for over 70% of their total exports. Russia already had one extended economic decline from 2014-2015 where is actually saw its GDP decline by 3.7% in 2015. This is significant. We do note today that the when the stock markets declined by over 1%, the price of oil declined by 2% and the ruble declined by 2% also. So……what happens if the decline continues? The Russian GDP grew by only 1.2% in 2019. The next Russian election is in 2024, so they have some time to ride out any problems, but as they are busy changing the constitution into who knows what; then if we actually do see a significant decline in the Russian economy over an extended time, then the elections, or even internal stability, could become an issue.

Ukraine and sanctions and such: Not unrelated to the Russian economic problems are the sanctions imposed by the U.S. and European as a result of its actions in Ukraine, including the seizure of Crimea. This have been an issue since then, both in Russia and in U.S. politics. Needless to say, if the Russian economy declines, these issues will remain at the forefront.

Iran and Iraq: Cannot help but notice that Iran has a lot of internal turmoil and unrest, in addition to occasional head-to-head confrontations with the U.S. The Iranian economy is also heavily tied to the price of oil. Nothing fuels a protest movement like a declining economy. One could also say the same of Iraq. Of course, we have troops in Iraq.

Plague?

This is far from my area of expertise, but I am following the spread of the Coronavirus with concern. It has already killed over 50 80 106 people in China, forced them to shut down a city of 11 million people (Wuhan); and now there are three five cases in the U.S., three in France, almost 2,000 more than 2,700 confirmed cases in China (more than 4,500 on Tuesday, 28 Jan.), more than 40 confirmed cases outside of China in 13 places (more than 70 confirmed cases in 17 places on Tuesday, 28 Jan.). They say nearly 60 million people in China are on partial or full lock down in multiple cities. What we know

This is tragic but the worse may yet to come. The human toll is going to tragically get worse. The virus apparently can spread before symptoms show. One wonders how bad it is going to be before it is contained.

There could also be a significant economic cost. Considering that nearly 60 million people are on partial or full lock down….what does this do to production and work? As the virus spread, what is the economic cost? One can envision a scenario where Chinese economy stalls or declines and there is criticism of the government response (which is almost inevitable if this continues to expand). Does this created additional unrest or internal problems in China? Does this further impact the Chinese economy? Would a decline of the Chinese economy (which is 16% of the world economy) result in a stalling or decline of many other economies in the world? One could spin out a downward scenario here.

Don’t want to be alarmist, but this does concern me. We have not had a major world-wide “plague”  since the Spanish flu epidemic of 1918-1920. According to some accounts it affected up to 500 million people and killed 50 million or more. More recently was SARS (Severe Acute Respiratory Syndrome) from 2002-2004. This came out of China, transferred to humans from bats in Yunnan province. It produced 8,098 documented cases resulting in 774 deaths in 17 countries. It was completely contained and no new cases have been reported since 2004. There has also been MERS (Middle East Respiratory Syndrome) or the “Camel flu” from 2012 to the present which has affected almost 2,000 people with a mortality rate of 36% among those diagnosed! It was not just confined to the Middle East with an outbreak in South Korea in 2015 that killed 36. There may be a large number of milder undiagnosed cases. This disease is still not contained.

The Coronavirus will hopefully be contained soon like SARS was, but the scenarios are frightening if it is not.

 

 

P.S. In the news Monday morning: Dow falls more than 400 points as the coronavirus outbreak worsens

 

Size of Fleets around the South China Sea, Part 2

So, China has 2 carriers, 36 destroyers, 52 frigates and 67 subs (SSN and SSK) to enforce it’s claims to the South China sea. All the nations that have competing claims (Taiwan, Philippines, Indonesia, Brunei, Malaysia and Vietnam) have a total of 4 destroyers, 43 frigates and 17 subs (SSK). This is not an even match. But, there are a few other players in the immediate region and there are a few other players in the Pacific that may have some influence. Lets look at them:

Also in the area are the following countries:

…………………….Singapore…..Thailand…..Cambodia

Small carrier………………………….1

Destroyers……….0
Frigates……………6………………..7

Corvettes…………6…………………7

Littoral……………..8

Submarines……..4………………….1

Patrol vessels…..2………………….8

Patrol ships…………………………22……………..21

Patrol boats…………………………23

LPD………………..4………………..1

LST……………………………………2

LCU…………………………………..9………………1

Mine Sweeper…..4………………….5

Others……………3………………….5

Auxilleries…………………………..17

Riverine Patrol Boats…………….189

 

Not connected to the South China Sea, but close enough to get our attention are the following:

………………………….S. Korea……N. Korea…..Japan…..Australia….New Zealand

Helicopter carriers……1……………………………….4……………2

Cruisers…………………………………………………..8

Destroyers…………….12………………………………22…………..2
Frigates………………..11…………….3………………10…………..8…………….2

Corvettes……………..12…………….14………………6
Submarines…………..18…………….70……………..20…………..6

Patrol vessels………….0……………………………………………………………..2

Patrol ships…………..71……………………………….13………………………….2

Missiles boats…………………………30

Torpedo boats……………………….247

Patrol boats…………………………..191……………….6…………..2

LSD……………………………………………………………………….1

LST……………………..8…………………………………3

Other Amphib………….5………………………………..2………………………….1

Mine warfare………….11……………30………………26…………..6

Other……………………2………………………………..8…………..7…………….1

Auxiliary……………….20……………………………….21………….2

 

Needless to say, in an extreme emergency (which would probably involve the U.S.) we would probably expect Japan, Australia, South Korea and Taiwan to cooperate. This is a total of 7 carriers, 8 cruisers, 40 destroyers, 51 frigates and 48 submarines compared to China’s 2 carriers, 36 destroyers, 52 frigates and 67 subs (SSN and SSK)

 

Finally there is the Russian Navy, which has 1 carrier, 2 battle cruisers, 11 destroyers, 10 frigates and around 45 submarines (SSGN, SSN and SSK), although not all will be in the Pacific. Then there is the United States which has 11 carriers, 9 amphibious carriers, 22 cruisers, 69 destroyers, 20 Littoral Combat Ships and 52 submarines (SSGN and SSN). Not all of these will be it the Pacific either. Details are here:

U.S. Navy Compared to Russian Navy

 

The Size of Fleets in the South China Sea, Part 1

These has been a little rumbling lately in the news about Malaysia and Vietnam asserting their territorial rights in the South China Sea. Of course, part of the area they asserting is part of their 200 mile economic exclusion zone happens to be territory that Red China also claims. These are not the only countries that have such conflicts. Bordering the South China Sea is China, Taiwan, Philippines, Indonesia, Brunei, Singapore, Malaysia, Thailand, Cambodia and Vietnam. There countries with competing claims are China, Taiwan, Philippines, Indonesia, Brunei, Malaysia and Vietnam. Let us look at their naval assets for a moment.

China has the largest navy in the region. Their fleet (the People’s Liberation Army Navy) consists of:

2 new carriers – 54,500 to 58.600 tons (one commissioned in 2019)

36 Destroyers – 3,670 to 12,000 tons

52 Frigates – 2,000 to 4,200 tons

42 Corvettes – 1,400 tons

109 Missile boats – 170 to 520 tons

94 Submarine chasers

17 gunboats

20 mine countermeasures vessels – 400 to 1,200 tons

6 Amphibious transport docks (LPD) – 25,000 tons

1 Mobile Landing Platform

32 Landing Ship Tanks (LST) – 4,170 to 4,800 tons

31 Landing Ship medium (LSM) – 800 to 2,000 tons

7 Ballistic Missile Submarines (SSBN) – 8,000 to 11,500 tons

12 Nuclear attack Submarines (SSN) – 5,500 to 7,000 tons

55 Attack submarines (SSK) – 2,110 to 4,000 tons

The fleet also includes a 12 replenishment oilers and 232 various auxiliaries. The fleet is definitely growing and will have a third carrier around 2022.

The other countries have:

…………………….Taiwan……Philippines…..Indonesia….Brunei….Malaysia….Vietnam
Destroyers………..4
Frigates…………..22…………..(2)……………..8…………………………..6……………..9

Corvettes………….1…………….1…………….10…………………………..6……………14
Subs (SSK)………4……………..0……………..5……………………………2……………..6

ASW Corvettes…………………………………14

Patrol Vessel……………………11………………………………4…………..8

Patrol ships……….12…………..7……………37……………..9…………..8

Missile boats……..31………………………….15……………………………8

Mine sweepers….10………………………….12…………………………….4……………..8

Patrol boats……………………58…………..104……………23………….17……………54?

LSD…………………..1………….2……………..5

LST…………………..2………….5…………….12

LSM………………………………………………12…………………………………………..6?

Auxiliaries…………..5……….13………………42…………………………..14…………..12

 

The Taiwanese corvette is 567 tons, their patrol ships are 580 tons, their missile boats are 171 tonnes. The small Philippine fleet will get two frigates (2,600 tons) in 2020. Their corvette is 1,200 tons. Their offshore patrol vessels range from 712 to 3,250 tons. The patrol ships range from 140 to 357 tons, their patrol and missile boats are all less than 60 tons. The Indonesian ASW Corvettes 950 tons, East German built (we have a piano from East Germany).

There are some other countries on the periphery of this conflict, like Singapore, Thailand and Cambodia. We will address them in a subsequent post.

China and Russia Defeats the USA

A couple of recent articles on that latest wargaming effort done by RAND:

https://www.americanthinker.com/blog/2019/03/rand_corp_wargames_us_loses_to_combined_russiachina_forces.html

The opening line states: “The RAND Corporation’s annual ‘Red on Blue’ wargame simulation found that the United States would be a loser in a conventional confrontation with Russia and China.”

A few other quotes:

  1. “Blue gets its ass handed to it.”
  2. “…the U.S. forces ‘suffer heavy losses in one scenario after another and still can’t stop Russia or China from overrunning U.S. allies in the Baltics or Taiwan:”

Also see: https://www.asiatimes.com/2019/03/article/did-rand-get-it-right-in-its-war-game-exercise/

A few quotes from that article:

  1. “The US and NATO are unable to stop an attack in the Balkans by the Russians,….
  2. “…and the United States and its allies are unable to prevent the takeover of Taiwan by China.

The articles do not state what simulations were used to wargame this. The second article references this RAND study (RAND Report) but my quick perusal of it did not identify what simulations were used. A search on the words “model” and “wargame” produced nothing. The words “simulation” and “gaming” leads to the following:

  1.  “It draws on research, analysis, and gaming that the RAND Corporation has done in recent years, incorporating the efforts of strategists, regional specialists, experts in both conventional and irregular military operations, and those skilled in the use of combat simulation tools.”
  2. “Money, time, and talent must therefore be allocated not only to the development and procurement of new equipment and infrastructure, but also to concept development, gaming and analysis, field experimentation, and exploratory joint force exercises.”

Anyhow, curious as to what wargames they were using (JICM – Joint Integrated Contingency Model?). I was not able to find out with a cursory search.

The Japanese Aerospace Industry

A schematic rendering of Japan’s proposed F-3 fighter [Tokyoexpress.info]

In my previous post, I discussed the progression of aircraft in use by the Japanese Air Self Defense Force (JASDF) since World War II. Japan has also invested significant sums in its domestic aerospace manufacturing capability over this same time period.

Japanese aircraft manufacturing has long been closely tied to the U.S Air Force (USAF) and U.S. aerospace majors offering aircraft for sales, as well as licensed production. Japanese aerospace trade groups categorize this into several distinct phases, including:

  • Restarting the aircraft business – starting in 1952 during the Korean War, Japanese aerospace firms like Mitsubishi and Kawasaki reacquired aircraft manufacturing capability by securing contacts with the USAF for maintenance, repair and overhaul (MRO) of damaged USAF aircraft, including the F-86 Sabre, considered by the Americans to be the star aircraft of the war (although many believe its opponent from the Soviet side, the MiG-15 to have been superior.) There was little doubt, then, that the JASDF would purchase the F-86 and then license its domestic production.
  • Licensed production of US military aircraft – “Japan has engaged in licensed production of U.S. state-of-the-art fighter planes, from the F-86 to the F-104, the F-4, and the F-15. Through these projects, the Japanese aircraft industry revived the technical capabilities necessary to domestically manufacture entire aircraft.”
  • Domestic military aircraft production – Japanese designed aircraft, while independent, unique designs, also leveraged certain Western designed aircraft as their inspiration, such as the T-1 and eventual F-1 follow-on and the clear resemblance to the British Jaguar. This pattern was repeated in 1987 with the F-2 and its clear design basis on the F-16.
  • Domestic Production of business, and civil aircraft – “Japan domestically produces the YS-11 passenger plane as well as the FA-200, MU-2, FA-300, MU-300, BK-117, and other commercial aircraft, and is an active participant in international joint development programs with partners such as the American passenger aircraft manufacturer Boeing.”

Mitsubishi Heavy Industries (MHI) won a contract to build the wing for the Boeing 787, a job that Boeing now considers a core competency, and is unlikely to outsource again (they kept this task in house for the more recent 737 MAX, and 777X aircraft). This shows MHI’s depth of capability.

Also in the previous post, I could not help but include the “F-22J,” a hypothetical fighter that has been requested by the Japanese government numerous times, as the air power threat from the Chinese People’s Liberation Army Air Force (PLAAF) has grown. The export of the F-22, however, was outlawed by the Obey amendment to the 1998 Defense Authorization Act (a useful summary of this debate is here). So stymied, the JASDF and supporting Ministry of Defense personnel conducted a series of design studies in order to establish detailed requirements. These studies clarified the approach to be taken for the next aircraft to put into service, the F-3 program, ostensibly a successor to the F-2, although the role to be played is more of an air superiority or air dominance fighter, rather than a strike fighter. These studies concluded that range, or endurance is the most important metric for survivability, a very interesting result indeed.

Airframe developers…appear to have settled on something close to the 2013 configuration for the F-3 that emphasized endurance and weapons load over flight performance… That design, 25DMU, described a heavy fighter with a belly weapons bay for six ramjet missiles about the size of the MBDA Meteor. The wing was large and slender by fighter standards, offering high fuel volume and low drag due to lift but penalizing acceleration.… The key factor was that the high-endurance design provided more aircraft on station than would be available from an alternative fleet of high-performance fighters. – (Aviation Week & Space Technology, February 15-28, 2016)

I am curious about the air combat models that reached the conclusion that endurance is the key metric for a new fighter. Similar USAF combat models indicated that in a conflict with PLA armed forces, the USAF would be pushed back to their bases in Japan after the first few days. “In any air war we do great in the first couple of days. Then we have to move everything back to Japan, and we can’t generate sufficient sorties from that point for deep strike on the mainland,” according to Christopher Johnson, former CIA senior China analyst [“The rivals,” The Economist, 20 October 2018]. (History reminds us of aircraft designed for range and maneuverability, the Mitsubishi A6M “Zero,” which also de-emphasized durability, such as pilot armor or self-sealing fuel tanks … was this the best choice?) Validation of combat models with historical combat data seems like an excellent choice if you are investing trillions of Yen, putting the lives of your military pilots on the line, and investing in a platform that will be in service for decades.

Given this expected cost, Japan faces a choice to develop the F-3 independently, or with foreign partners. Mitsubishi built and flew the X-2 “Shinshin” prototype in April 2016. The JASDF also issued an RFP to existing aircraft manufacturers, including the BAE Eurofighter Typhoon, the Boeing F-15 Eagle, and the Lockheed Martin F-22 Raptor. In October 2018, the Typhoon and the Eagle were rejected for not meeting the requirements, while the Raptor was rejected because “no clear explanation was given about the possibility of the U.S. government lifting the export ban.” The prospect of funding the entire cost of the F-3 fighter by independently developing the X-2 also does not appear acceptable, so Japan will look for a foreign partner for co-development. There is no shortage of options, from the British, the Franco-Germans, or multiple options with the Americans.