Impact of Coronavirus on China's Economy

All of us know that the pandemic had taken its initial stages from China. So, we know that this country was primarily the reason for the Corona Virus, hence other countries had to take extreme precautionary measures in order to provide safety to its citizens. Most countries did this by avoiding any imports from China, in order to increase minimal contact with the country. All of us know that China is the foremost exporter of many types of goods especially technology, hence for China, this was a huge setback since most of the country’s economy depended on its exports. Since there was a decrease in exports, the country had to decrease its imports as well in order to make sure that there was no trade deficit or negative trade balance. Chinese consumers import a lot of foreign technology as well since this is a huge section of the Chinese eCommerce market. But since imports had to decrease, the income of Chinese people had to stop in that section as well causing a decrease in consumer spending therefore a decrease in consumer spending had decreased consumer confidence which in turn decreased the economy of China.

China also has the most amount of labor working for its different type of companies and factories estimated to be around 806 million out of the 1.4 billion population. There was estimated 85,279 cases in China which means that most of the labor working, had to go home and rest, causing a decrease in production hence decrease in the GDP. By the time China recovered, it had lost 4,634 people to the virus and even though 80,477 of them had recovered, the country had already decreased a lot of its economy. Not only this, but the factories had to close down for a long period of time as well in order to decrease the spread of the virus which in turn caused productivity to go down to zero. China is the world’s leader in manufacturing and producing almost half of the world’s steel therefore shutting these factories down would cause a huge impact on its economy.

Prior to the pandemic, Bi Chao made an investment that he thought would ensure a comfortable living by spending $28,000 into buying hundreds of exotic animals. He planned to breed them on his farm in order to profit from it by selling these animals to restaurants and other food places in order for people to have a dining experience on weird and wonderful wildlife. When the pandemic did took place, it caused not only the closing down of restaurants, but it also caused the Chinese government to ban the rearing and sale of exotic animals resulting in a huge loss for Bi Chao and other investors who bought animals for their businesses.

What other impacts of the pandemic caused China’s economy to deteriorate? And how do you think China could have fought against these impacts during the pandemic?

Citation: Campbell, C. (2020, April 21). Impact of Coronavirus on China's Economy Only Just Beginning. Retrieved September 21, 2020, from https://time.com/5824599/china-coronavirus-covid19-economy/