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*Effects of Coronavirus on China’s economy

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*Effects of Coronavirus on China’s economy
There are three major views, both in China and abroad, about the negative impact of the 2019-nCov epidemic on China’s economy. The “critical impact” theory tends to think that it will have serious effect on the already slackening Chinese economy, even ausing a slide of its growth rate and handicapping global economy. Based on data about the economic impact of SARS in 2003, the “manageable impact” theory believes that the epidemic will have only limited and controllable effect on China’s economy, and that China’s economic performance of the whole year will not be much influenced despite a declining growth rate in the first season. The “uncertain impact” theory holds that historical evidence does not tell much about the future economic trajectory, but the actual economic impact depends on how long the epidemic will last. After all, China’s economic size (99 trillion RMB in GDP) is 9 times that of 2003 (11.7 trillion RMB). Indeed, it would be imprudent to judge the economic impact of the epidemic by historical experience. The new millennium has witnessed the outbreak of a number of epidemics, natural disasters or other acute incidents in China. Yet the Chinese government has managed to contain and tackle them…

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