A virus is crippling China's economy — and threatening the world's

A virus is crippling China's economy — and threatening the world's

China’s pandemic caused by the rapid spread of the deadly novel coronavirus (2019-nCoV) and the Chinese regime’s failed response to control it has had a tremendous impact on China’s economy, as well as the world’s. Although it is hard to quantify the economic impact because of a lack of data, given the scope and magnitude of the pandemic inside China and its spread outside the country’s borders, analysts reasonably can conclude that it will result in a global disaster with serious economic effects.To get more latest china economy news, you can visit shine news official website.

As of Feb. 11, reported cases have skyrocketed to 43,104 and the death toll has exceeded 1,000, surpassing the 2003 SARS epidemic when at least 8,096 people were infected and 774 died. But the real numbers involving the coronavirus likely are much larger than what is reported. Many victims were cremated immediately, before their diagnosis and treatment in China. And the Chinese government’s information control regarding the outbreak has included public opinion manipulation that has lied about the disaster from the beginning.

To contain the pandemic, the Chinese regime sealed off the epicenter of the outbreak by locking down cities. As of Feb. 10, China had locked down three provinces (Hubei, Liaoning and Jiangxi), all four centrally-administered municipalities (Beijing, Shanghai, Tianjin and Chongqing), and more than 80 other major cities. The consequence has been major disruption to several hundred million people’s daily lives and economic production.

ADVERTISEMENT In the locked down provinces, home to more than 140 million people, the gross domestic product (GDP) exceeds 10.6 trillion yuan ($1.5 trillion USD). There are nearly 100 million residents in the four municipalities, where the GDP typically is over 12 trillion yuan ($1.7 trillion USD). Among the top 10 economic performance cities, all except one have been in the state of lockdown. Adding other locked-down cities, the pandemic has disrupted areas that produced at least half of China’s GDP. In reality, the affected areas likely are much larger — and the impact on people much greater.

The drastic lockdown is of such a scale that it has placed many businesses in all sectors in considerable distress. It is particularly destructive for private, small- to medium-size enterprises in the service sector, or those that rely on operating cash flow. During the Chinese New Year celebration, the quarantine caused three sectors — tourism, movie theaters and restaurants — to lose at least 1 trillion yuan ($143 billion USD) in revenue. By comparison, on the day of the Chinese New Year in 2019, China’s box office revenue was 58.59 1.5 billion yuan ($215 million USD), but it was 1.8 million yuan (about $258,000 USD) this year. Similarly, last year China’s tourism revenue during the new year was 513.9 billion yuan ($73.7 billion USD), but this year almost all sightseeing sites are closed.

The economic impact on Chinese agriculture is ruinous. Because of the lockdown, main transportation routes have been blocked. Businesses cannot ship perishable produce to market in the cities, where the price for vegetables and fruits is skyrocketing, and many villages also are locked down. Moreover, farmers reportedly are not allowed to work in the fields, resulting in rotten produce and huge losses for agriculture. The spring plowing and planting season should have begun, but because of the pandemic, the work has been delayed. That will result in a major grain shortage.