China said the progress in the treatment of coronavirus: how to restore the economy

Chinese President XI Jinping and other top leaders of the country urging Chinese companies to resume production, the country lost growth and economic development. Due to the outbreak of Covid-19 many companies on the verge of collapse due to production stops and congestion arising in the commodity chains. And this problem extends beyond China because the Chinese producers related to many companies around the world, suddenly deprived of access to critical components.

Speaking at the recent Beijing meeting on coordination of efforts to combat the novel coronavirus pneumonia, XI Jinping pointed out that regions with relatively low risks should focus on the full restoration of normal production and life. As for the regions with moderate risk, they are, according to President XI, should facilitate the orderly resumption of work activities and production, based on the situation to control the epidemic on the ground.

the Regions of China, one after another, ease restrictions, which is more than half the country’s industrial base was in idle after the lunar new year. In the industrial zone of the coastal areas of the country showing signs of life. However, become famous outbreak of coronavirus Wuhan city breaks do not touch. Although there have been reports that travel restrictions there will be partially weakened, the authorities later confirmed that Wuhan will remain locked in quarantine.

the Big problem is the shortage of labor. Including because many companies worked came from Hubei province where restrictions on movement – just at a time when many workers returned home to celebrate the lunar New year, and stayed because of the quarantine travel abroad. Workers from affected areas is still prohibited to return to the large industrial centers. Coaches work only on 50% of the bandwidth to reduce Rthe claim of the spread of the virus.

According to official statistics, restarted for more than 70% of enterprises in provinces such as Shandong and Jiangsu, and Zhejiang province, this figure exceeds 90%. But most of these companies are overloaded, and many workers still missing.

However, the authorities are making optimistic forecasts. About 80 million workers, internal migrants have returned to their jobs, it is expected that by the end of February will return more 120 million people. In March, waiting for the return of 100 million workers.

In the industrial cities such as Dongguan and Zhongshan, they say, they would not require putting work into quarantine until they are healthy, and factories that meet the new safety rules, no need to wait for government approval to resume.

State Department daily random checks to ensure that prevention to curb the virus on businesses – in particular, study whether the time of disinfection temperature is measured by whether employees, whether they are provided with protective masks and individual places for lunch (the employees got to eat at a distance of not less than a meter from each other). Every working hostel should delegate one person for the day, while other workers to leave the factory are not allowed.

Sometimes the demands made by local authorities, in contradiction with the actual situation and preventing the resumption of business. So, in the South-West of China require that companies were daily given two masks for each worker and showed a stock of masks in two weeks. But such requirements are difficult to accomplish because the masks are sold throughout the country.

“it is Extremely important to return the company to normal operation, otherwise it will hurt the wages of workers, the cash flows of the companies and therefore, the foreign export”, – quotes Bloomberg economist at ING Bank NV in Hong Kong iris pan. But there is a risk that the return of people to work can cause a new peak of disease. And if, for example, at the factory to resume work, will be found cases, it will be necessary to close the company for a two-week quarantine.

In any case, even without taking into account the problems with the labor shortage and the threat of coronavirus, one must understand that the restoration of normal operation is not given to “little blood” – will have to build a new broken chain, logistics, etc.