China's NDRC: "New Coronavirus Economic Impact Temporary"

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The National Development and Reform Commission (NDRC), China's macroeconomic management authority, stated that the economic shock caused by the spread of the novel coronavirus infection (Wuhan pneumonia) is temporary and controllable.

Lian Weiliang, Deputy Director of the NDRC, said at a press briefing on the 3rd, "The spread of the novel coronavirus has a significant impact on consumption. In particular, the impact on service consumption such as transportation, culture and tourism, hotels and food and beverages, entertainment, and movies is relatively large."

He explained, "During the special transportation period of the Spring Festival (Chinese New Year) holiday, the number of people traveling using various means of transportation has significantly decreased, and income from movies, tourism, and dining out has also shown a clear decline compared to the same period last year. However, consumption remains active in sectors such as online shopping, food ordering, and internet-based entertainment."

Deputy Director Lian emphasized, "The extent of the impact of the novel coronavirus on the Chinese economy depends on the success of virus control. What I want to stress is that the impact on the Chinese economy is phased and temporary. The fundamental aspect of the long-term development of the Chinese economy will not change."

Meanwhile, the Chinese stock market, which reopened after 11 days following the Spring Festival holiday, experienced a sharp plunge. The Shanghai Composite Index closed at 2,746.61, down 7.72% (229.92 points) from the previous trading day. This is the largest intraday drop since August 24, 2015 (8.5%). The Chinese stock market, reopening after the Spring Festival holiday, plunged due to the impact of the novel coronavirus infection (Wuhan pneumonia) spread.

This content was produced with the assistance of AI translation services.