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China counters economic fallout from coronavirus

2020-02-26 22:00 585

BEIJING, Feb. 26, 2020 /PRNewswire/ -- A news report by China.org.cn on China's economy outlook under the influence of COVID-19:

Lockdowns, travel restrictions, shops and movie theaters closed, business operations delayed, and migrant workers stranded in their hometowns. These are part of the economic fallout as China curbs the COVID-19 outbreak. Because of this, some Western media claim that China's economy has been severely hit and faces a looming collapse. Some experts and scholars have also stated that even if China's economy rebounds, it cannot meet the goals set previously, which could spill over to affect the global market.

These views, however, are too pessimistic. It's undeniable that China's economy is indeed under downward pressure, but given the short-lived impact of the novel coronavirus, it will not alter Chinese economy's long-term bright outlook.

While resolutely containing COVID-19, many Chinese companies are already getting back to business. Two economically developed provinces, Zhejiang and Guangdong, have taken the lead in resuming production, under the premises of taking precautions and ensuring safety. They have provided valuable experience for other regions.

Zhejiang has created "Index of Enterprise Resumption Rate," "Five-colored Map of the Epidemic Situation" and "Five-colored Map of Resumption Rate" to comprehensively analyze the epidemic and track the rate at which businesses are resuming work. So far, over 50% of Zhejiang's industrial enterprises and 20% of its service enterprises above designated size have resumed operation. Zone I and Zone II of Yiwu International Trade City have reopened. Train services have been transporting goods from China to Europe, in response to orders from overseas. The government of Guangdong province has issued 20 policies and measures to help enterprises accelerate production resumption, and provide targeted support to ensure employment and reduce burdens. Judging from industrial power consumption, since January, more than 60% of enterprises in Guangdong have resumed work. Other provinces such as Jiangsu, Shandong and Liaoning are also getting back on track.

In terms of foreign capital, many provinces and cities have redoubled efforts to attract foreign investment while implementing the new "Foreign Investment Law" and its regulations. In January this year, China attracted nearly 87.6 billion yuan in foreign investment, a year-on-year increase of 4%. A total of 3,485 foreign-invested enterprises were newly established. German chemical giant BASF invested $10 billion in Guangdong province to build an integrated petrochemicals plant. Meanwhile, ExxonMobil's $10 billion petrochemical projects in Guangdong, and the Tesla electric vehicle project in Shanghai are progressing well. Foreign investors remain optimistic about the Chinese market and it's expected that post-virus China will still be the best destination for foreign investment.

On the consumption side, although the coronavirus has affected the catering, entertainment, tourism and other industries in China, the impact is transient, rather than permanent. Once the epidemic is over, the pent-up consumption potential will be unleashed immensely, sparking a boom. Taking all these factors into consideration, it's reasonable to believe that although China's GDP growth may slow in the first quarter of 2020, the long-term economic outlook is still promising.

China's economy is more resilient than it was in 2003 during the SARS outbreak. The country's solid foundation, huge domestic market and flexible system will help the economy bounce back quickly. As the world's second largest economy, the ripple effect of changes in China's economic performance can be felt across the globe. In addition, China occupies a crucial position in the global supply chain. Therefore, minimizing the impact of COVID-19 and accelerating economic recovery and development are both China's own tasks and its responsibility to the world.

China Mosaic
http://www.china.org.cn/video/node_7230027.htm

China counters economic fallout from coronavirus
http://www.china.org.cn/video/2020-02/26/content_75746498.htm

 

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Source: China.org.cn
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