Open the reason why China's economy is likely to "recover slowly" after experiencing the latest wave of "Covid" poisonin

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jiraporn66
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In 2020, when the covid-19 outbreak occurs which originated in China andดาวน์โหลด SLOTXOspread all over the world until almost every country has to lock down serious damage to the economy Some have even compared it to the heaviest damage in 300 years, or the heaviest since World War II.

At that time, China took decisive measures. Forced quarantine of millions to stop the spread of the virus. This makes China the first country to recover from the coronavirus crisis and is able to restart the economy faster than other countries. That year, the Chinese economy recovered from a negative 6.8% in the first quarter to a positive 3.2% in the second quarter, helping the global economy to some extent.




However, this year which China faces the latest round of Covid-19 outbreak Omicron species in March Along with the Chinese government announced a policy of extreme austerity. 'Covid must be zero' contrasts with other large economies that have relaxed policies coexisting with coronavirus. This led analysts to believe that there is a tendency for the Chinese economy to recover more slowly than the previous round. Because of the strict policy, the supply chain system was disrupted. some factories Some areas are unable to continue producing products.


People walk at a shopping center in Pudong New Area. Shanghai Municipality, East China, May 20, 2022. (Xinhua/Fang Zhe)
China's strategist Meng Lei at UBS Securities said tougher measures to contain the disease in regions such as Shanghai, Jilin, Xi'an and Beijing have disrupted logistics and supply chains. The biggest problem with the return to production. Therefore, the return of production would be delayed.

An example of a factory affected is Volkswagen, although Chinese factories have resumed production. But the Covid-19 policy The government's supply chains and transportation are hampered. which the company itself cannot say for sure how many cars it will produce because it is a joint venture factory with local investors


Tan Wang, chief economist at Hang Seng Bank China, said the biggest impact of the new outbreak would be It interrupts the government's normal policy schedule. The latest wave of infections leading to lockdowns comes after the federal government released its annual economic plan at a congressional meeting in March. for an economy where the government has heavily intervened and managed The annual meeting is a critical part of the cycle for the development and implementation of national policy.

“Supply chain problems and weak consumption It's something that can be managed. But as soon as the government's policy schedule is interrupted therefore difficult to return to normal Get in the way quickly.” At the same time, different agencies have very different economic goals. Therefore, there must be a compromise between the departments. As a result, the policy proceeded with the greatest delay.
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