The Impact of COVID-19 Policy and the Economy in China

The Policy

The COVID-19 is spreading in all parts of the world. As we know, China did implement more severe restrictions when the pandemic first broke out.

Currently, medical studies in China and abroad show that the virus can be well contained with effective quarantine, which is exactly what China has been doing for the past weeks. Individuals can also effectively protect themselves from infection by practicing good hygiene with disinfectant measures.

The most common policy response has been a lockdown. In most cases, this is done to reduce the pool of people susceptible to infection, lowering the transmission rate, and easing pressure on stressed healthcare systems. But what has been the impact of different policy responses? Every citizen who wants to takes public transportation or anyone who enters shopping malls and supermarkets must wear a mask.

China has also achieved a great result, and its people will not forget that the international community provided critical support and help at the most challenging time for China to fight against the COVID-19 pandemic. 

The Economic Recovery

More financial results have confirmed the picture that was emerging from early reports. The impact of the coronavirus is hitting all companies but with wildly different levels of severity. This will play out as countries move towards a relaxation of the most severe levels of lockdown. The focus now shifts to the shape of the economic recovery.

Economic activity rebounded in China quite quickly but remains at a reduced level compared to where it would otherwise have been at this time of year. The initial rebound looked promising – an expectation that businesses would get back to pre-coronavirus levels. But this has not fully happened. Much of daily life remains curtailed – fewer people are eating at restaurants, using public transport, visiting shopping malls. As we consider countries that are behind China in the progress of the disease’s development and that were harder hit, what can we expect? This may be a good beginning of economic recovery.

Contributor: Anny Guo

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