Coronavirus Pandemic Magnifying the Impact of Trade War on China
But all of those economic blows, individually and combined, pale in comparison to what the COVID-19 epidemic did to China’s economy in January and February of 2020. Estimates put the cost of the epidemic at $144 billion to China’s economy in just the seven days of the Lunar New Year Holiday alone. That’s not counting the continuing stream of businesses fleeing China like refugees trying to escape an advancing army. For the foreseeable future, China will see more businesses leave than stay.
But if the economic damage from China’s Wuhan virus epidemic was crushing—and it was and continues to be—the decline in global demand due to the COVID-19 pandemic could well be cataclysmic for China’s already depleted economy.
According to China’s National Bureau of Statistics (NBS), industrial productivity fell by 13.5 percent year over year, with fixed asset investment declining massively by 25 percent. Retail sales, a bellwether for consumer demand, cratered by 25 percent in January and February of this year. There is little reason to expect it to recover any time soon.
via theepochtimes Coronavirus Pandemic Magnifying the Impact of Trade War on China