BEIJING – The recent coronavirus that began infecting people in China two weeks ago has left many Chinese business owners feeling as though they are coming back from a long vacation with no break or relief. With nearly half of all provinces delaying work until after the New Year holiday, it is evident how serious this situation really was when you consider what would happen if these employees were allowed to interact during such an important time period for both parties involved–not just those who got sick but also their loved ones still waiting on them at home!
[Updated on Tuesday, 21st December 2021]
Over half of the provinces delayed the resumption of work from the first week of February by at least a week in an effort to keep the virus from spreading,
The Lunar New Year holiday was originally supposed to end on February 10th, but many provinces in China had delayed the resumption of work by at least a week in order to keep people from interacting and spreading the virus.
The World Health Organization (WHO) has not yet declared the coronavirus an international public health emergency. However, the fear of the virus is so strong that it has caused some schools to shut down for weeks or even months at a time.
Coronaviruses are characterized by coughing, fever, and difficulty breathing. The current coronavirus is especially concerning because it can be transmitted through contact with airborne droplets or contact with surfaces that have been contaminated with bodily fluids.
What the virus means for China
The virus has severely effected China’s economy. The country’s GDP growth is expected to be downgraded by 0.5 percent this year, according to the International Monetary Fund (IMF).
China’s health care industry has also been hit hard by the virus. To date, more than 1,300 cases of infection have been reported, with at least 6 reported deaths in Beijing alone.
Because of the outbreak, many hospitals are turning away walk-in patients and running on emergency power due to shortages of both water and electricity. This means that people who need immediate medical treatment are finding it extremely difficult to obtain any help.
Meanwhile, some private hospitals in Beijing are refusing all new admissions until the end of March in order to prevent spreading the virus among their patients.
The economic consequences of the virus
The disease has caused widespread fear and chaos in China, as well as economic consequences. The virus has already cut $1 billion out of China’s GDP, according to the World Bank.
There are other long-term effects of the virus that will likely have a tangible effect on the country’s economy. For example, Chinese people are changing their consumption habits due to the outbreak. For example, consumers are spending less on alcohol and cigarettes—products that are usually consumed by Chinese consumers after the Lunar New Year holiday celebrations.
The virus has been a major concern for China, where the economies of the cities have been severely hampered. Factories have been closed and goods have been in short supply. The news that the virus is mutating and becoming more dangerous is a cause for concern.
Last week, Moody’s reported a credit negative for Chinese banks, given the greater potential for increased loan delinquencies.
“If you just look at the virus, of course, it has a negative impact on China’s economic growth,” Yulia Wan, senior analyst at Moody’s Investors Service, said in an interview this week. But she also noted the meaningful number of new government support policies.