Page 16 - 2022 White Paper on the Business Environment in China
P. 16
2 White Paper on the Business Environment in China
1.1 Covid-19 Pandemic: Impacts and
Mitigation
A SARS-like virus, coronavirus SARS-CoV-2 many were still wondering what recovery could
(formally known as 2019-nCoV) spread look like. Big shifts in stock markets, where
around the globe since its outbreak in Wuhan city shares in companies are bought and sold,
in China. More than 124,000 people in Greater can affect the value of pensions or individual
China had contracted the coronavirus. Globally, savings accounts (Isas). The FTSE, Dow Jones
the virus has infected more than 261 million Industrial Average and the Nikkei all saw huge
people so far and caused around 5.2 million falls as the number of Covid-19 cases grew in
deaths as of this writing (November 2021). Like the first months of the crisis. The major Asian
other coronaviruses (CoV) which can mutate and US stock markets have recovered following
and spread from animals to humans, severe the announcement of the first vaccine, but the
acute respiratory syndrome coronavirus 2 (SARS- Financial Times Stock Exchange 100 Index (FTSE)
CoV-2) can cause fever, respiratory infections, was still in negative territory in early 2021. In
pneumonia, multi-organ failure, and even death response, central banks in many countries,
in severe cases. The elderly and those with pre- including the UK, have slashed interest rates.
exsisting chronic health conditions such as lung That should, in theory, make borrowing cheaper
or heart disease and diabetes are the vulnerable and encourage spending to boost the economy.
and high-risk groups. The COVID-19 pandemic Analysts are worried that the possibility of further
has severely affected the economy. The rapid lockdowns and delays in vaccination programs
spread of the disease has impacted global might trigger more market volatility in 2021.
business and tourism. International companies, Many people lost their jobs or saw their incomes
such as Apple, Tesla, and IKEA, shut down their cut. Unemployment rates increased across major
operations in the China during the early local economies. In the US, the proportion of people
outbreak in 2020. With more travel restrictions out of work hit a yearly total of 8.9%, signaling
imposed inside and outside of China, numerous an end to a decade of jobs expansion. Millions
books of flights, hotels, and tours have been of workers found themselves on government-
canceled. Although the majority of companies supported job retention schemes as parts of
had been back to normal operation, consumer the economy, such as tourism and hospitality,
spending remained weak. The pandemic impact came to a near standstill. If the economy is
on China’s trade and various industries across growing, that generally means more wealth and
the world have been unprecedented, resulting in more new jobs. It's measured by looking at the
a plunge in China’s GDP growth rate since 2020 - percentage change in gross domestic product,
the lowest point over the last decade. or the value of goods and services produced,
typically over three months or a year. The
Impacts on World Economy International Monetary Fund (IMF) estimates
that the global economy shrunk by 4.4% in 2020.
The coronavirus pandemic reached almost The organization described the decline as the
every country in the world. Its spread has left worst since the Great Depression of the 1930s.
national economies and businesses counting The only major economy to grow in 2020 was
the costs, as governments struggle with new China. It registered a growth of 2.3%. The IMF
lockdown measures to tackle the spread of the is, however, predicting global growth of 5.2% in
virus. Despite the development of new vaccines, 2021 driven primarily by countries such as India
and China (Jones, et al).
16
1.1 Covid-19 Pandemic: Impacts and
Mitigation
A SARS-like virus, coronavirus SARS-CoV-2 many were still wondering what recovery could
(formally known as 2019-nCoV) spread look like. Big shifts in stock markets, where
around the globe since its outbreak in Wuhan city shares in companies are bought and sold,
in China. More than 124,000 people in Greater can affect the value of pensions or individual
China had contracted the coronavirus. Globally, savings accounts (Isas). The FTSE, Dow Jones
the virus has infected more than 261 million Industrial Average and the Nikkei all saw huge
people so far and caused around 5.2 million falls as the number of Covid-19 cases grew in
deaths as of this writing (November 2021). Like the first months of the crisis. The major Asian
other coronaviruses (CoV) which can mutate and US stock markets have recovered following
and spread from animals to humans, severe the announcement of the first vaccine, but the
acute respiratory syndrome coronavirus 2 (SARS- Financial Times Stock Exchange 100 Index (FTSE)
CoV-2) can cause fever, respiratory infections, was still in negative territory in early 2021. In
pneumonia, multi-organ failure, and even death response, central banks in many countries,
in severe cases. The elderly and those with pre- including the UK, have slashed interest rates.
exsisting chronic health conditions such as lung That should, in theory, make borrowing cheaper
or heart disease and diabetes are the vulnerable and encourage spending to boost the economy.
and high-risk groups. The COVID-19 pandemic Analysts are worried that the possibility of further
has severely affected the economy. The rapid lockdowns and delays in vaccination programs
spread of the disease has impacted global might trigger more market volatility in 2021.
business and tourism. International companies, Many people lost their jobs or saw their incomes
such as Apple, Tesla, and IKEA, shut down their cut. Unemployment rates increased across major
operations in the China during the early local economies. In the US, the proportion of people
outbreak in 2020. With more travel restrictions out of work hit a yearly total of 8.9%, signaling
imposed inside and outside of China, numerous an end to a decade of jobs expansion. Millions
books of flights, hotels, and tours have been of workers found themselves on government-
canceled. Although the majority of companies supported job retention schemes as parts of
had been back to normal operation, consumer the economy, such as tourism and hospitality,
spending remained weak. The pandemic impact came to a near standstill. If the economy is
on China’s trade and various industries across growing, that generally means more wealth and
the world have been unprecedented, resulting in more new jobs. It's measured by looking at the
a plunge in China’s GDP growth rate since 2020 - percentage change in gross domestic product,
the lowest point over the last decade. or the value of goods and services produced,
typically over three months or a year. The
Impacts on World Economy International Monetary Fund (IMF) estimates
that the global economy shrunk by 4.4% in 2020.
The coronavirus pandemic reached almost The organization described the decline as the
every country in the world. Its spread has left worst since the Great Depression of the 1930s.
national economies and businesses counting The only major economy to grow in 2020 was
the costs, as governments struggle with new China. It registered a growth of 2.3%. The IMF
lockdown measures to tackle the spread of the is, however, predicting global growth of 5.2% in
virus. Despite the development of new vaccines, 2021 driven primarily by countries such as India
and China (Jones, et al).
16
