2019-nCoV outbreak in China only poses temporary economic difficulty: Expert

By Zhang Yuannan | People’s Daily app


Rio de Janeiro (People’s Daily) –The novel coronavirus outbreak in China is only a temporary difficulty, and China will find a solution, said Hsia Hua Sheng, Associate Professor of Finance at São Paulo School of Business Administration.

“Even with this temporary difficulty, China is still one of the most competitive countries in the world, ” Hsia told People’s Daily.

“On the one hand, we can see the effort and determination of the government into financial services. For example, the Chinese central bank injected 1.7 trillion yuan ($244.12 billion) through reverse repos into the market earlier this week, demonstrating its determination to stabilize market expectations and boost market confidence.”

He added, “on the other hand, the collaboration of all the Chinese people to overcome this temporary virus is very positive,” noting that the creativity of China’s skilled workers helps to create a digital solution to combat the coronavirus with the Chinese government.

He said that the role of China in the global economy is very important. “The temporary slowdown of Chinese consumption in and out of China (for example, tourism) will affect the GDP negatively of major tourism oriented countries.”

“This problem will also affect global production activities, like the automotive industry,” said Hsia, adding many multinational firms have to stop their production outside of China because of the lack of components made in China as China has a huge relevance in the global supply chain.