China on Saturday marked the first day of chunyun, the 40-day period of Lunar New Year travel, and braced itself for an increase in the spread of coronavirus infections.
This Lunar New Year public holiday, which officially begins on January 21, will be the first since 2020 without coronavirus travel restrictions.
China has dismantled its zero-Covid policy over the past month following protests against frequent testing, restricted movement and mass lockdowns.
But the abrupt changes have exposed many of China's 1.4 billion people to the virus for the first time, starting a wave of infections that is overwhelming some hospitals, emptying pharmacy shelves and causing long lines at crematoriums.
China's Ministry of Transport said on Friday that it expects more than two billion passengers trips over the next 40 days, an increase of 99.5 per cent year-on-year and reaching 70.3 per cent of trip numbers 2019 — the year before the pandemic hit.
Reaction to the news online was mixed, with some comments praising the freedom to return to hometowns and celebrate the Lunar New Year with family for the first time in years.
Many others, however, said they would not travel this year, fearful of infecting elderly relatives.
“I dare not go back to my hometown, for fear of bringing the poison back,” said one user on Weibo, China's version of Twitter.
There are widespread concerns that the return home of migrant workers in cities will cause a surge in Covid-19 infections in smaller towns and rural areas that lack the capacity to deal with them, such as enough intensive care beds and ventilators.
On Sunday, China's border with Hong Kong will reopen and international travellers arriving in China will no longer have to quarantine.
However, the World Health Organisation has said China's official virus data underreports the true extent of its outbreak, and more than a dozen countries are now demanding pre-boarding Covid tests for travellers from China.
Chinese officials and state media have defended the handling of the outbreak, playing down the severity of the surge and denouncing foreign travel requirements for its residents.
On Saturday in Hong Kong, people who had made appointments had to queue for about 90 minutes at a centre for PCR tests needed for travel to countries, including mainland China.
For much of the pandemic, China poured resources into a vast PCR testing programme to track and trace Covid-19 cases, but the focus is now shifting to vaccines and treatment.
A circular published by four government ministries on Saturday signalled a reallocation of financial resources to treatment, outlining a plan for public finances to subsidise 60 per cent of treatment costs until March 31.
Meanwhile, sources told Reuters that Beijing is in talks with Pfizer to secure a licence that will allow domestic drugmakers to manufacture and distribute a generic version of the US company's Covid-19 antiviral drug Paxlovid in China.
Many Chinese have been attempting to buy the drug abroad and have it shipped to China.
On the vaccine front, China's CanSino Biologics announced that it has begun trial production of its Covid-19 mRNA booster vaccine, known as CS-2034.
China has relied on nine domestically developed Covid vaccines approved for use, including inactivated vaccines, but none have been adapted to target the highly-transmissible Omicron variant and its offshoots currently in circulation.
The overall vaccination rate in the country is above 90 per cent, but the rate for adults who have had booster shots drops to 57.9 per cent, and to 42.3 per cent for people aged 80 and older, according to government data released last month.
China reported three new Covid deaths on the mainland for Friday, bringing its official virus death toll to 5,267, one of the lowest in the world.
International health experts believe Beijing's narrow definition of Covid deaths does not reflect a true toll, and some predict more than a million fatalities this year.
With reporting from agencies
The biog:
From: Wimbledon, London, UK
Education: Medical doctor
Hobbies: Travelling, meeting new people and cultures
Favourite animals: All of them
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
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Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The%20BaaS%20ecosystem
%3Cp%3EThe%20BaaS%20value%20chain%20consists%20of%20four%20key%20players%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConsumers%3A%3C%2Fstrong%3E%20End-users%20of%20the%20financial%20product%20delivered%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDistributors%3A%3C%2Fstrong%3E%20Also%20known%20as%20embedders%2C%20these%20are%20the%20firms%20that%20embed%20baking%20services%20directly%20into%20their%20existing%20customer%20journeys%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEnablers%3A%3C%2Fstrong%3E%20Usually%20Big%20Tech%20or%20FinTech%20companies%20that%20help%20embed%20financial%20services%20into%20third-party%20platforms%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProviders%3A%3C%2Fstrong%3E%20Financial%20institutions%20holding%20a%20banking%20licence%20and%20offering%20regulated%20products%3C%2Fp%3E%0A
The specs: 2019 Mercedes-Benz C200 Coupe
Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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