What is the situation in China concerning the coronavirus? Are the numbers of infected and deceased people published by Beijing correct? “Mission Money” interviewed one of Germany’s top experts on China, Frank Sieren. The China expert (currently also a correspondent for the “Handelsblatt” in China) reports from China on the current mood of the population. He gives an assessment of whether the government in Beijing is manipulating the official figures downwards.
The economic damage caused by the corona virus is much more serious for China’s economy than the effects of the trade war with the USA, said Sieren. Public life in China is practically at a standstill, consumption (60% of China’s GDP) is reduced to a minimum because people try to go into public as little as possible. As a result, China’s GDP is likely to be affected much more sustainably than by the trade war.
According to Sieren, the transparency of the regime in Beijing is better than could have been expected. The majority of the population understands the measures taken by the government. We have to put the figures into proportion – many would not go to hospital and report their illness.
How long will the coronavirus crisis last? And what economic consequences can be expected? Frank Sieren’s assessment, direct from Beijing: