Coronavirus.- Chinese Authorities, confident in resuming production soon, while US Federal Reserve not so

With the Coronavirus outbreak already affecting companies outside mainland China such as Nissan or Tesla (as reported by some media). With the fera of nCov contagion menacing international first raw trade fairs like the Mobile World Congress in Barcelona, all people’s eyes are now closely monitoring how the PRC manages both the health crisis and the return of chines people to work after the Spring Festival holidays.

Xi Jinping (President of the PRC). DoD photo by Erin A. Kirk-Cuomo via Wikimedia Commons.

While Chinese Authorities keep on showing confident in resuming production as soon as possible and in the streght of the PRC’s economy to recover in a short period of time, foreighn experts simply keep on following the evolution of a crisis that threatens growth and production chains around the world, including the USA.

A clear example is US Federal Reserve Chair, Jerome H. Powell, who said in his Semiannual Monetary

Jerome H. Powell (Chair of the Board of Governors of the Federal Reserve System). US Federal Reserve (public domain).

Policy Report to the Congress this morning: “Some of the uncertainties around trade have diminished recently, but risks to the outlook remain. In particular, we are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy”.

Menawhile Xi Jinping (General Secretary of the CPC Central Committee, President of China and Chairman of the Central Military Commission) said on Monday that “the immediate priority, according to Xi, is to take calibrated and coordinated action to address risks associated with the return of city residents after their Spring Festival holiday. But he also underscored that: “Water, power, gas, heating and other utility services must run smoothly to support the normal functioning of urban centers. Illicit activities such as price gouging, hoarding and profiteering must be dealt with to the full extent of the law, and other issues in the epidemic response must be properly addressed.”

Except Hubei the whole country is gradually returning to work, Cong Liang says

Cong Liang (Secretary General of the National Development and Reform Commission -NDRC-) informed at the press conference of the Joint Prevention and Control mechanism of th State Council:”At present, from the perspective of the whole country, provinces (autonomous regions and municipalities) except Hubei are gradually returning to work and production, especially in key areas such as key medical supplies, energy, food, transportation and logistics, companies have started,” Cong Liang (Secretary General of the National Development and Reform Commission -NDRC-) assured this same morning during the press conference offered by the National Development and Reform Commission leaders to the press members accredited at Bijing (PRC).

Customers linig up to enter a supermarket in Wuhan during 2019 nCoV coronavirus outbreak. Photo by Painjet through Wikimedia Commons.

Foreign Ministry spokesman Geng Shuang stressed during his daily press conference held this morning: “… the impact of the epidemic on China’s economy depends on the progress and effectiveness of the prevention and control of the epidemic. We believe that the fundamentals of the Chinese economy and the long-term positive trend will not change with this epidemic, and we have the ability to minimize the impact of the epidemic on the economy.

“In fact, recently, international organizations such as the International Monetary Fund and the World Bank have stated that China has enough political space to respond to the epidemic, and China’s efforts to prevent and control the epidemic have effectively reduced the risks that the economy World can face.”

Key nationally monitored suppliers resumed production from 94.6% to 57%.8%

Cong Liang continued: “According to the latest data from 22 key provinces across the country on

Cong Liang (Secretary General of the National Development and Reform Commission -NDRC-).

February 10, the rate of resumption of mask companies that everyone cares about has exceeded 76%, the rate of reinstatement of protective clothing companies is 77%, and the rate of reinstatement of key nationally monitored food production and processing companies 94.6%, the coal mine recovery rate is 57.8%, the supply of electricity, natural gas and refined oil is sufficient, and the civil aviation, railway, and water transport networks are operating normally.”

“However”, he recognised, ” we also understand that the promotion of full-scale resumption of production and production also faces the problems of insufficient rework personnel, restrictions on the start of work in some places, severe shortage of epidemic prevention materials such as masks, inadequate upstream and downstream industrial chains, poor transportation and logistics, and high funding pressure.”

160 million workers must return home by 18th February to be able to resume work while spread of the virus must be avoided, an actual challenge

Xu Yahua (Director, Transportation Services Department, Ministry of Transport) assured during the mentioned press conference: “This year’s Spring Festival return transportation was affected by the epidemic situation, and the passenger flow was scattered and the time was prolonged. According to the monitoring and analysis of big data, from now until the end of the Spring Festival, that is, on February 18, it is estimated that 160 million people will return to work one after another.” And this must be assured avoiding contagion through transportation.

Staff monitoring passengers’ body temperature in Wuhan railway station during the Wuhan coronavirus outbreak.China News Service through Wikimedia Commons.

Xu informed that: “As of yesterday, inter-provincial and inter-city passenger transport in Sichuan, Guangdong, Hunan, Shandong, Jiangsu, Fujian and other provinces have gradually resumed operations. In addition, the passenger train lines in 18 provinces, autonomous regions and municipalities have gradually resumed operation.”

He said that “in the provinces where labor is exported and areas where foreign personnel gather,

Xu Yahua (Director, Transportation Services Department, Ministry of Transport)

strengthen transportation organizations, send point-to-point direct chartered cars, and exempt migrant workers from chartered tolls for free return tolls. As of yesterday, Sichuan, Shandong, Zhejiang and other local governments have organized more than 200 trips for migrant workers, and organized nearly 9,000 migrant workers to return to work.”

Once at home the chaellenge is, Xu Yahua added: “…gradually restore urban public transport services. Affected by the epidemic, bus services have been suspended in 428 cities in 27 provinces across the country, and bus services in these cities have now resumed. As of yesterday, buses in 20 prefecture-level cities and 18 county-level cities have resumed operation, and rail transportation in cities such as Changchun has gradually resumed operation.”

Finally Xu Yahua informed that:”…drivers, loaders, including drivers of postal courier vehicles, as well as road and water passenger transporters who have transported supplies to key epidemic areas such as Hubei Province and passengers of Wuhan City who meet the requirements after body temperature testing do not need to take measures for 14 days to fully guarantee the resumption of work and production and the supply and transportation of all kinds of materials needed by the people.”

SMES will receive Government support to resume activity and compensate losses

Zhang Yong (Deputy Director of the National Development and Reform Commission) explained at the press conference of the Joint Prevention and Control Mechanism of the State Council, on the issue of the small and medium enterprises (SMES) specific needs and problems returning to work due the coronavirus outbreak : ” …subsidies are provided in accordance with regulations for enterprises that produce urgently needed supplies for epidemic prevention during the Spring Festival, and human resource service agencies that provide job offers.

People lining up to buy masks in a drugstore at Wuhan. Photo by China News Service through Wikimedia Commons.

Second is to supporting the stable employment of small, medium and micro enterprises. Expanding the benefits of the stable return policy for small, medium and micro enterprises.

“If the layoff rate of insured companies with less than 30 employees does not exceed 20% of the total number of employees insured, you can apply for the unemployment insurance return policy.

“Companies that organize employees to participate in various online and offline training during the

Zhang Ying (Director of Employment Promotion Department, Ministry of Human Resources and Social Security)

current shutdown and recovery of the epidemic period can be included in the existing subsidy training scope.

“For those who have already issued personal business guarantee loans, if the borrower suffers from new coronary pneumonia, they can apply for a repayment of up to one year and continue to give discounts.

“At the same time, we have also noticed that the relevant departments and local Governments have recently focused on the development of small, medium and micro enterprises, and introduced many policies such as tax reduction, financial support, rent subsidies, etc. We also believe that these policies will ultimately benefit enterprises and employment.”

Not quoted by Zhang Yong but already issued by the PRC fiscal Authority, Comapnies will be able to compensate the losses beared by the coronavirus outbreak during the next eight years.

Helping China, key for global economy

Foreign Ministry spokesman Geng Shuang said on the regular daily press conference held this morning:”Today, China’s GDP represents approximately 16% of world GDP, and its contribution to

Geng Shuang (Spokesperson at the Foreign Affair Ministry PRC).

global economic growth has exceeded 30%. If China’s economy is affected, it will inevitably affect other countries and the world economy will also be affected. affected, therefore, China’s fight against epidemics is for itself and for the world, supporting China and helping China also safeguard the common interests of the international community.

“In the face of a public health crisis, neighbors cannot protect themselves and the overreaction will only be counterproductive. The highest priority is for the international community to come together and work together to overcome the epidemic and restore normal exchanges and cooperation between countries as soon as possible. possible. Only in this way can we provide strong support for the stable growth of the world economy and release positive expectations. ”

Image over the headline.-

Related Eastwind links:

Rabobank reports on possible global recession by 2019 nCov outbreak (updated 11th Feb.)

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