Chinese leaders were accused of being too relaxed in dealing with the coronavirus. Then they actually closed the country and went to isolation. Many businesses were affected from Asia to European countries. Many products were not delivered and small entrepreneurs ended up paying for self storage cost to save undelivered goods. This led to economic collapse. Now, Chinese leaders are striving to find balance. “Deal with the virus but don’t sacrifice the economy.” Following this statement doesn’t actually work.
China tries to get back to work amid coronavirus outbreak
Chinese Secretary of State Ji Jinping has asked his compatriots to return to the production base and resume work in the past few weeks. In areas where the risk is “relatively low”, the order says that production must be completely resumed. The fight against viruses should be limited to preventing the introduction of the virus. In other words, control and heat monitoring points still exist in railway stations, airports and shopping malls. Otherwise, life must be normalized again.
Even in areas of “moderate risk”, people must work again, and the authorities need to ensure that appropriate quarantine measures are taken “according to the local conditions of the epidemic.”
Poor economic data
The districts affected by a coronavirus, especially the crisis areas in Hubei Province, are not affected by this requirement, and the outbreak began in this area, which is the world ’s most populous population of approximately 70,000. Xi Jinping said that these areas should continue to be “fully focused on control and prevention.”
Indeed, in almost half of China, infected people are not registered at all. According to official statistics, there are only a few infected people in the northeast region where heavy industry is located. However, economic activities across the country have been suspended. In February, the main index of production for all factories in China, the PMI (Purchasing Manager Index), fell below 38 points. Everything below 50 points represents a reduction in production. Since the China Index was released in 2005, this number has never been lower. In the service industry, the index fell below 30 points.
The most important answer to a corona explosion
Jörg Wuttke, President of the European Union Chamber of Commerce, explained the central government’s actions in Beijing. This must be cut and the economy damaged. “The important thing is to go out of the extreme now.”
The central bank has lowered interest rates for entrepreneurs, and the central government has announced further investments in infrastructure projects. But economic life is not true.