THE YU GARDEN, a 16th-century complex of pavilions and ponds in the heart of Shanghai, is all gussied up for the Chinese new-year holiday. Its walkways are bedecked with colourful lanterns, its stalls laden with dumplings, its entrances flanked by dozens of security guards to handle crowds. Just one thing is missing: people. Fearful of coronavirus, they are staying home. “I’ll be doing well if I make a few sales today,” says Li Xinming, manager of a silk-scarf shop.
The concern is less the severity of the virus, which seems less lethal than SARS, but rather the nature and potential duration of China’s efforts to bring the outbreak under control. And disruption in China, the world’s second-biggest economy, has global consequences. “It’s not the disease, it’s the treatment,” wrote analysts with Gavekal Dragonomics, a consultancy.
That will be a drag on consumption. The extent of the damage will depend on how long it takes to stop the virus, but the timing is already rotten. Last year retail sales topped 1trn yuan during the new-year week, a third more than an average week. This year, sales are sure to fall well short of that.
Countries accustomed to big-spending throngs of Chinese tourists face a brutal stretch. China’s government has ordered all tour groups to be suspended until the virus is contained. In Thailand, authorities expect the number of Chinese visitors will fall by 2m to 9m this year, reducing tourism revenue by some $1.5bn.
Even if the work stoppages elsewhere are milder, they, too, will be a risk for a wide range of sectors. Some are vitally important; roughly 80% of active ingredients for all medicines come from China. Others are less so; China supplies nearly 90% of the world’s plastic flowers.
Economic distress is not what we should be worried about. Health care for all! Now!!
No doubt. Millions of peoples have canceled all means of transportation towards China. China and Pakistan are the home of both nations for each others without border gap... Our country Pakistan have to declared emergency on medical checking at Pak-China border and airports!
China's economy will come to a greater halt if the virus disperses rapidly.
The future