Don't worry too much about the impact of the epidemic on China's economy
02/25/2020

Since the outbreak of the new crown pneumonia epidemic, under the circumstances of restricted personnel movements, the catering, tourism, transportation, and accommodation industries have been hit hard, which has also affected the overall Chinese economy to a certain extent. But I think I don't have to worry too much. For the Chinese economy, due to its large size, strong resilience, and large room for manoeuvre, although the epidemic has important impacts on some industries and regions, it is generally controllable and the impact is short-term, and it will not change the long-term trend of the Chinese economy. Good fundamentals. At a macro level, not only will efforts to prevent and control the epidemic, but also orderly promote the resumption of production and production of enterprises, the impact of the epidemic on China's economy will be minimized. From the current information, most state-owned enterprises, the main force of the national economy, resumed work and resumed production, ensuring the stable operation of the economy. For example, in Beijing, as of February 12, the headquarters of 43 municipal management enterprise groups have been fully resumed; 1,089 second-tier and important subsidiary companies, and the proportion of resumed operations and resumed production was 99.7%. State-owned enterprises in major economic provinces such as Shanghai, Jiangsu, and Zhejiang have also resumed work on a large scale to ensure that the epidemic prevention and control and production and operation are "two-handed, two-wrong". Secondly, from the perspective of time, the impact of the epidemic on China's economy was mainly concentrated in February. The industries most affected by the epidemic were catering, tourism, transportation, and accommodation. However, manufacturers of pharmaceutical, mask, and disinfection products actually went up against the trend, diluting and slowing down the adverse effects on the catering and accommodation industries to some extent. At the same time, although people stayed at home during the epidemic, the consumption of daily necessities could not stagnate, and related consumer behaviors continued to occur, especially the new retail guarantees residents' lives, so the impact of the epidemic on the retail industry was also controllable. Finally, in the face of the impact of the epidemic, various departments increased their support for enterprises and strived to overcome difficulties together. On February 15, the State Administration of Market Supervision, the State Drug Administration and the State Intellectual Property Office proposed ten policy measures, including registration online, implementation of notification commitments, establishment of an emergency green channel for administrative licenses, extension of the administrative license period, and accelerated application of standards. 2. Prudent management of abnormal lists, strict investigation of arbitrary charges and price increases, strengthening of quality technical service assistance, reduction and exemption of technical service charges, and encouraging enterprises to participate in the "three guarantees" action. On February 16, the General Administration of Customs issued 10 "hard-core" measures to fully support foreign trade enterprises to speed up the resumption of work and resume production, and promote the steady growth of foreign trade. The Executive Meeting of the State Council on February 18th decided to reduce the payment of corporate social insurance premiums and implement the policy of deferred payment of housing provident fund, and take various measures to stabilize the employment of enterprises. These policies and measures have a very important effect on the firm development confidence of enterprises. China's progress will not stop here. It has a solid material and technological foundation accumulated over the past decades, huge market potential and development resilience, strong support from a series of policies and measures, employees and enterprises working together, and the winter will always pass. Spring is coming.