It began with a cancelled train and flight connections in Wuhan and expanded quickly across the country. At the end of January China stopped, in fact its economy. The national holiday surrounding the lunar new year on 25. January have been extended until the beginning of February. Only until the middle of March, the number of Corona-new infections in the country declined sharply was returned to the normal life again.
How heavy is the way to go in Little Zhang Xu, for instance, shows reporters the New York Times, mountains of windshield in his workshop in Shanghai. Some of them are still broken, others are already repaired or brand new, but will move to Zhang in the coming weeks. One of his two employees is still in his small home village far away from Shanghai trapped. Worse: There are no customers that need just a windshield.
China celebrates so far the only “stage victory” in the fight against Corona
The crisis has not only cost the economy a lot of money, but also the citizens. Many households had to live without or with less income from their savings. You the money for everything you need for your daily life, for car repairs is now missing, as well as visits to concerts, or new Smartphones.
companies missing, it is also often to employees, because a lot of parts just to stand still in some country under quarantine or curfews. President Xi Jinping had last week in the epicenter of the epidemic in Wuhan for the low number of new infections celebrate, called, but only “an important milestone”. Still, many regions of his Empire to fight against the disease.
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Only 70 per cent in the workplace
50 million Chinese will not be able to work again, say official data. This applies especially to those who live in rural areas, but their Jobs but in the cities have. Only about 70 percent of the work forces are so far back in their factories and offices. There, where people work close to each other, this is permitted only with special face masks to protect against corona virus.
A shortage of workers and buyers, but inevitably leads to many problems for the entire economy: Manufacturing companies don’t know where you get your raw materials or intermediate products and to whom they can sell their products at the end. Because a large part of the Chinese economy depends on exports. With Stock Selection in Europe, you will achieve excess Returns with System! (Partner offer) Now 30 days free of charge test!
China’s economic growth is suffering from the global crisis
But almost every other rich country in the world has just lock own output and economic restrictions have been adopted. The world needs neither Chinese Smartphones, toys or solar systems.
“no matter how well China manages its domestic consumption to stimulate economic growth will Happen in the Rest of the world is severely limited,” says Leland Miller, CEO of China Beige Book, a US analysis firm for the giant Empire. His company interviewed each quarter, approximately 3300 Chinese companies. On average, sales decreased in the first quarter by 26 percent, the gains to 22 percent. A quick recovery of it will not give it.
With the assessment of Miller is not alone: This week, many banks cut their estimates for China’s economic growth this year. It goes from the 6.1 percent from the previous year, significantly down, it was clear, but now the scale looks bigger. The range is now of only 1.3 percent, with estimates for the Japanese Investment Bank Nomura, up to 3.5 percent in the forecast of the Chinese Bank China Renaissance. In the first quarter, we are in Agreement, there is the GDP could have fallen by up to ten percent.
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Around five million Jobs lost
these are not just abstract Numbers. Behind a weaker economic growth in sale for both companies and people are always personal considerations. Officially five million Chinese have lost in January and February of your Job. The unemployment rate is now 6.2 percent, the highest in the history of the Communist country.
Where is still being worked on, this is often only at half strength: The average factory utilization rate is currently around 50 percent of China’s power plants produce 17 per cent less electricity than before the crisis, and the freight rates of the national railway have been cut in half.
The government is trying to help where it goes. Underutilized businesses can apply for subsidies, as well as private individuals. Shanghai alone has spent $ 15 billion in loans and guarantees over the past few weeks. The education Ministry has created for the fall of 180,000 new positions for Doctoral candidates at the universities, because a lot of that now in the spring of your graduation, no place to be found. Successfully in the largest financial market in the world with the signal service Devisen100 act. (Partner offer) for a signal service 30-day free trial!
China’s path is blue, bypasses a break for the Rest of the world
As always, China with the restart of its economy, the Rest of the world looks on spellbound. The giant land provides the blueprint for all other States, the fight against the Virus, some weeks or months before the same problems in the future.
Particularly exciting is the question of how far a country can open its economy, before the virus wave is completely flattened in the process. Because if China had in the past few days, officially, no new infections, this could change quickly if the social life returns back to normal.
“are The economic losses already incredible,” says Xingdong Chen, of BNP Paribas, a responsible Economist for China, “I don’t think it’s right to start production and the economy until the Virus is completely gone.” Particularly in the USA, this is the question these days is controversial. Also, because President Donald Trump would put an end to the economic restrictions today rather than tomorrow and thus, as is so often polarized.
can go fast, but in the pants, Hubei showed up in Chongqing, a city of a million in addition to the strong of Corona affected Region. The Titan-giant Pangang had driven his production here in mid-February back up. A few days later, authorities closed the factory again, after two positive Covid-19 cases were diagnosed in the workforce, potentially 113 new infections are among.
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