FX.co ★ China rolls out measures to cushion economy from coronavirus

The coronavirus outbreak in China poses a serious challenge to the rule of President Xi Jinping. Nowadays, market participants, experts, and policymakers acknowledge the fact that the epidemic has gone too far. Being alarmed by its fallout, investors worry that it could derail China’s national economy, dent demand for oil, and cause a slowdown in the global economy. Сhina’s President Xi Jinping ordered to stamp out the economic aftermath of the coronavirus and ensure that the country’s GDP maintains momentum in the long term. In fact, the fast-spreading epidemic puts the efficiency of China’s government to the test.

Interestingly, President Xi Jinping was aware of the coronavirus two weeks before he acknowledged the fact of the epidemic publicly in early February. Originally, local officials held back true data on the death toll and the number of cases. They feared a negative response from the government to such highly sensitive information. It proves that China’s top executive agencies do not care about any feedback from regional officials. Almost two months have passed since the first cases were reported in early December 2019 until the quarantine was officially declared. On December 30, doctor Li Wenliang warned his colleagues on social media of the new pneumonia-like deadly virus originated in Wuhan. Government sensors spotted the young doctor immediately. At the same night, he was questioned at the healthcare agency and then handed over to the Department of National Security. On December 31, the Department announced that eight doctors had been under investigation as they allegedly had been spreading rumors about the virus outbreak. When the death toll was soaring, China’s authorities had to admit the truth.