CNBC: China’s Xi Jinping, under fire from virus outbreak, could also face an ‘economic crisis’
* Xi Jinping, in a speech released over the weekend, had a message for provinces: Control the epidemic, but make sure they are fulfilling reform and development goals.
* The Chinese government could face an “economic crisis” if the outbreak doesn’t abate, The Economist Intelligence Unit (EIU) wrote in a note last Friday, before the Xi speech was published.
* As the outbreak unfolded, many analysts downgraded China’s growth for this year.
* As China struggles to get back on its feet, with factories starting to reopen and workers trickling back, progress is slow. Returning workers need to follow quarantine orders, meaning factories are still operating at limited capacity.
Already under heavy fire as the coronavirus outbreak shutters factories, disrupts supply chains and is set to shock China’s already-slowing economy, Chinese President Xi Jinping, it seems, is also under pressure to still deliver the country’s promised growth.
In a speech delivered Feb. 3 and released over the weekend, Xi said: “Currently, we still have to deliver this year’s economic and social targets.” Last year, China’s growth dropped to its slowest pace in nearly three decades.
Xi, according to a translation of his remarks, said those tasks must still be “done well,” with a message for provinces — other than those most severely affected by the outbreak — to keep a balancing act: Control the epidemic, but make sure they are fulfilling reform and development goals.
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WNU Editor: Analysts are saying that China GDP growth will shrink to around 3.5% .... Morgan Stanley says China’s first-quarter growth could fall as low as 3.5% due to coronavirus (CNBC). But my friends and contacts in China are telling me that nothing is moving, there is no growth, and there is actually a very real possibility of negative growth if this crisis continues. Who to believe? In my case I believe my friends in China who are on the front lines. And as for what may happen to Chinese President Xi? He has positioned himself that should he fall, so will everyone else.
3 comments:
The West said there would be an economic crisis in China in the 1980s?
Don't forget the power of pent up demand.
Western countries don't understand the resolve of the Chinese people. China has gone through famine, starvation, epidemics through its history. The west can slander China all they want but time will tell. Just wait and see.
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