Chinese authorities have acknowledged the impact of the coronavirus epidemic on economic and social development. It has alarmed China’s economic growth as worries mount over the coronavirus’s effect on the economy, unemployment, and global supply chains. It is unavoidable that the novel coronavirus epidemic will have a considerable impact on the economy and society, and coronavirus affecting China is plunging the entire world into a global recession like happened in 2008.
It is unavoidable that the novel coronavirus epidemic will have a considerable impact on the economy and society, and will destroy businesses and livelihoods in China, the US, Asia, North America, the UK, Germany, the EU, and almost everywhere around the world. It will also impact technology companies’ stocks, e.g., Facebook, Amazon, Apple, Microsoft, etc.
The virus, which has claimed the lives of more than 2,500 people and infected more than 77,000 in the mainland, is the most significant public health crisis to hit China and another part of the world. Containment measures which include mandatory quarantine for workers, partial shutdowns of factories, and transport restrictions, have caused significant disruptions to the economy, which was already growing at record low levels before the virus outbreak.
These low-risk zones, along with areas with only a small number of infections, should “comprehensively restore production” and 2020 Global Recession Fears As Coronavirus Shuts Down Stuttering Chinese Economy.
Medium-risk zones should recommence production in an “orderly manner,” while the priority for hard-hit areas like Hubei, the province at the center of the outbreak, was still containing the virus. Coronavirus: Wuhan, the city at the epicenter of the epidemic, marks a month under lockdown
A crucial part of the vision is doubling the size of the economy from 2010, which economists say will require minimum gross domestic product (GDP) growth of 5.6 percent this year. As long as we can turn the crisis into an opportunity to restore production and social life in an orderly fashion, we will be able to achieve the economic and social development goals set for this year.
It was universally reported that the government had set China’s GDP growth target at “around 6 percent” for 2020, although the official number was never published. The growth target and several other critical economic goals were expected.
While authorities are ramping up efforts to kick start the economy at home, some observers have raised concerns about the long-term effects of China’s position in the global economy.
The medium- and long-term impact of the coronavirus has increasingly become a concern, especially whether the coronavirus will dampen the global supply chain or weaken China’s international role.
China must ensure the smooth operation of “the industrial supply chain for foreign trade” and “stabilize its share of the global market.
China’s manufacturing supply connection pummelled from all sides in efforts to restart
Coronavirus costs keep rising for manufacturers, who are facing huge losses in sales and struggling to ramp up production. Logistical logjams persist as transportation networks struggle to find workers and navigate lockdowns across China.
Choked off of workers, logistics, suppliers and networks, China’s production base is facing a multitude of unprecedented challenges, as coronavirus containment efforts hamper factories’ attempts to reopen.
Many of those that have been granted permission to resume operations face critical shortages of staff, with vast swathes of China still under lockdown and some local workers afraid to leave their homes. Others cannot locate the materials demanded to make the products, and even if they could, the shutdown of shops and marketplaces around China means demand has been sapped.