China’s Economy Taking a Hit After Coronavirus Has Started Turning into an Epidemic

by Vallari Gupte

The latest continent to be added to the list of countries to be affected by the coronavirus is Australia. While the origin of the virus has been scaled down to China, the Chinese have been more than quick to take the required steps to contain the virus amongst themselves. However, the mere outbreak of a new virus has certain effects on the country, in addition to the obvious, as dictated by the Chinese officials at a recent press conference.

The most affected sector that has taken the most hit seems to be the traveling sector as sales from travel dropped 28.8% from the previous year, as quoted Liu Xiaoming (Vice Minister of Transport). Furthermore, China also faces a severe shortage of medical supplies as the population of China exceeds far than that of any country on Earth. Furthermore, a 41.6% decline in civil air travel, a 41.5 % decline in rail travel and a 25% decline for road transport was observed.

“We face a severe shortage of (medical) supplies given the demand,” Wang Jiangping, vice-minister of industry and information technology, said Sunday, according to an official translation of his Mandarin-language remarks. Wang quotes an example that China requires a minimum of 100,000 protective suits every day. However, China only can produce suits at the low tens of thousands now.

The officials also quoted that the outbreak in China is here to say for the time being. The immediate aftermath of the virus has put China’s Wuhan into a potential lockdown with the government advising people to stay at home, canceling further public events restricting millions of citizens their social taste.

China’s Ministry of Finance further adds in an online statement that a variety of finance ministries have issued 11.2 billion yuan ($1.6 billion) in subsidies aimed at increasing existing funds for medical care.

Vallari Gupte

I am a business and technology reporter who is intrigued by new innovations and ideas. My desire to bring the latest news in the tech and business world to people has prompted me to create a blog that centers on the challenges, advancements, and innovations in these sectors. I am currently workinRead more...