The economic damage that the new coronavirus will cause is manageable according to China. That is what the Chinese envoy for the European Union in Brussels said. Zhang Ming spoke of a short-term impact, with Beijing also having sufficient resources to intervene “if necessary”.
Due to the virus outbreak, parts of China are hermetically sealed, and travel restrictions apply. The holiday period around the Chinese New Year was extended.
As a result, factories, for example, remained closed for longer, which also has an effect on supply chains.
Ming said that with the deferred business activities and reduced demand for services, there is some impact on the Chinese economy, but according to him, this is limited, short-lived and manageable.
Credit rating agency S&P Global recently predicted that economic growth in China might fall to 5 percent this year. The virus also takes a considerable bite out of the growth of the world economy.