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Opinion | As China battles the coronavirus, the prognosis for its economy is poor, despite silver linings for some sectors
- The coronavirus outbreak has highlighted the vulnerability of global supply chains. Service sectors, such as retail, hospitality and education, will be hit hard
- Health care manufacturers, e-commerce and fintech, however, may benefit
Reading Time:4 minutes
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The immense size and velocity of China’s economic growth, output and achievements under paramount leader Deng Xiaoping’s reforms, coupled with state interventions, have been much commented on as China vies with the United States to be the largest economy in the world.
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Consider this: China used more cement (6.6 gigatons) between 2011 and 2013 than the US did in the entire 20th century (4.5 gigatons) and produced more steel in just two years (May 2017 to 2019) than Britain did in over 150 years.
However, this great economic renaissance and the rosy vision for the future have recently been tarnished. China’s gross domestic product growth has been slowing, although it is still far better than that of many other economies.
This trend has occurred amid growing anti-globalisation, trade wars, a demographic “time bomb” and the need for China to move into higher-value, innovative and knowledge-based sectors. The new coronavirus health crisis has brought China’s economy and its future into even starker focus.
There is even some tentative speculation that one unforeseen consequence of the coronavirus could see China making more concessions to the US to end the trade war and bolster its economy in this time of turbulence.
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