Since the end of January, China has been focused on killing off COVID-19. Shocking to see 1.4 Billion Chinese people in lock step to kill off the pandemic at its source.
Let’s talk about the economic and cultural impacts.
Economically. the effects have been devastating. China did roughly 50 days of social distancing and various kinds of lock downs before starting to lighten up. Unbelievable break in the productivity of the country. Covid-19 did not stop every business these 50 days but it did stop many millions. The virus slowed down many businesses dramatically, and the follow on effects have hurt those not even directly impacted. For factories located in China, they first fell behind as could not produce and then started to frantically produce to catch up and then compoanies cancelled orders as the virus hit the Western countries. It has and is a horrible time for many businesses.
The Chinese national government has money while the local goverment has a lot of debt. Overall pressure is quite high. Chinese anger with their government cooled down by seeing Western governments not do any better. Now, they are becoming a model due to the success they have in stopping the virus. The Chinese National government lowered taxes on businesses and lowered fees where it had control of fees. It forced many companies to keep paying salaries even if they could not produce.
COVID-19 China Can Face
Hard problem, but not beyond China’s ability to cope. Besides the problem of covering up, China is quite good at these big challenges. Chinese people have that fighting spirit that I have nentioned here. (China described by the character Zheng 挣.)
So economically China has put on its fighting mask and will perservere. Being a culture that likes to save money, they are better prepared than a lot of countries.
China is clearly back to business. Many of our customers see this, and are busy hiring. COVID-19 has created economic hardship, but the number 2 economy is ready to do its part now.