Chinese New Year starts on Saturday, which means a lot of traveling from the city to the Chinese countryside. This is of great concern to the Chinese, as it could spread the tide of corona infections across the country.
According to Peter Ho, professor of Chinese economics and development at the London School of Economics, among others, a surge of corona infections in rural areas can cause big problems. “The capacity to help in the countryside is very low, which means that a large wave of infections can mean that little help can be offered.”
However, the Chinese New Year also has positive sides for the economy. “There is a huge wave of consumption going on, because the zero-covid policy has been abolished and citizens want to make and buy all sorts of things,” Ho says. The professor sees that buying behavior has a positive effect on the stock markets.
The worst case
“If the wave of infection cannot be contained properly, it will have serious consequences for the global economy,” Ho thinks. However, according to him, it remains to be seen how many people actually move to their native village in the countryside. “How many people eventually went home, and what consequences this will have, we will see in the coming days,” said the Chinese economics professor.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
