China to Resume Business As Usual Next Week - Forex News by FX Leaders

China to Resume Business As Usual Next Week

Posted Thursday, February 6, 2020 by
Skerdian Meta • 1 min read

Risk assets have been suffering in recent weeks, since the breakout of Coronavirus in China. Although, the biggest fear is a global recession due to this virus, besides the pandemic itself and deaths it has brought so far. China’s economy is much larger than 15-20 years ago, when SARS broke out and it is a lot more connected to the world, so a recession in China due to the virus would affect the global economy greatly.

Particularly now, the economic situation is very vulnerable, with the global economy pretty weak and close to a recession. So, if the virus continued and the disruption in China lasts, then the economy will surely suffer. But, Chinese officials are making some positive comments today, suggesting that business will resume as usual next week.

  • Other regions to resume normal production in an orderly manner
  • Calls for other regions except Hubei province to avoid unnecessary panic
  • Says that schools can postpone reopening when necessary
  • Says to increase number of beds and health workers for Wuhan
This looks like the green light for businesses and companies to resume their “normal” work starting from next week onwards. It doesn’t look like China will observe a longer break but I still doubt we will see things run at full capacity for many regions.
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