China has overcomed the COVID-19 but the economy of the country will still suffer the sequels of the coronavirus for some time, even if their companies and population return to work as fast as they are showing they are able to do.
The GSMA announced today that has cancelled the celebration of the MWC Shangai 2020, initially schedulled for 30th June-2nd July this year. This is the second big cancellation of the GSMA after that of the MWC Barcelona earlier this same year, due to COVID-19 concerns and effects.
The GSMA explains in their official communication that this decission has been adopted “…In light of current government guidance1, the global concern regarding the coronavirus outbreak, travel restrictions and other circumstances”.
The organisers of the MWC Sanaghai also point that they “will work with government and health authorities to find a suitable date and venue to hold regional conferences in China in the latter half of 2020. We will confirm the feasibility of this in the coming months.”
They underline as well that they have “been in regular contact with stakeholders, and sought the advice of health officials and other authorities, as health and safety remain our top priority.”
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators and nearly 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.
Post COVID-19 recovery in China not as fast as desirable
The IMF (International Monetary Fund) published last week their growth projections for Asia, including just a 1.2% growth for 2020 with rebound to an expected 9.2% growth of GDP for 2021.
“The revisions to growth reflect both losses of domestic activity due to the social distancing measures, as well as loss of external demand. We expect a rebound in economic activity later this year. This is because China is emerging from the outbreak first. Nonetheless, there are clear risks: the virus could come back and normalization could take longer,” said Chang Yong Rhee (Director of the IMF’s Asia and Pacific Department) at the press conference held last 15th April on the Asia Pacific prospects after the Spring Meeting.
Leaving aside the inhome situation in the PRC the IMF points that being the COVID-19 spread a pandemic situation there are external factors hindering a faster economic recovery in Asian economies including the PRC.
Following Rhee’s opening remarks at the press conference: “Advanced economies’ slowdown is much more severe. The world enteredrecession, contracting in 2020 by -3 percent, worst recession since Great Depression.Asia’s key trading partners are expected to contract sharply, including the U.S. by -5.9percent and Euro Area by -7.5 percent.
In general the IMF forecast for Asia-Pacific region the lowest growth since the 1960s. Reed underscored last week that “Asia’s growth in 2020 will come to astandstill. This is worse than the annual average growth rates throughout the GlobalFinancial Crisis (4.7%) or the Asian Financial Crisis (1.3%).
And “Asia still looks to fare better than other regions in terms of activity,” Rhee pointed.
Image over the headline.- Mobile World Congress Shanghai. Photo and logo, © GSMA. Composition,© Eastwind.
Related external links:
Link to the Circular issued by the State Council of the PRC on COVID-19 prevention measures
Related Eastwind links (Spanish edition):