According to the latest estimates of the scientists , the government is only less than a month to prevent businesses from leaving China Covid-19 service.
In a report published on March 2 in the News of the Chinese Academy of Sciences, experts said companies in textile, high-tech electronics and heavy industries such as metallurgy Kim may leave China first if the government fails to stop the epidemic from spreading until the end of the month.
After decades of economic expansion, whether the epidemic has caused Chinese companies to lose to foreign rivals is a major concern for the global economy.
A few days after Beijing announced a state of emergency with the quarantine measures nationwide to prevent outbreaks in Wuhan, Minister for Trade Wilbur Ross said this "will help accelerate the return of works for North America. "
Professor Wang Shouyang, scientist of the Chinese Academy of Sciences, the country’s largest scientific research agency, used a mathematical model to predict the impact of the disease on global value chains. bridge.
The risk that China will lose jobs does not only exist, but it could also become "an unexpected event causing the industrial chain to move out" and turn China into an "empty economy" if the disruption of operations. Production and business activities continued after the first quarter, the report said.
“There have been cases of a disease affecting an industrial chain. F-Tech, an auto parts manufacturer, has decided to shift its production of brake pedals at the Wuhan factory to factories in the ”the scientists wrote in the report.
The blockade in many places has helped China put the disease under control. According to a report published on February 29 by telecommunications service provider China Unicom, only 70% of Chinese citizens returned to their working places before the travel ban was imposed.
A report published by Worker’s Daily on March 4 said that although more than 90% of large-scale state-owned enterprises had resumed operations, about 70% of private and small businesses remained closed.
The researchers also suggest that the government should adopt a series of measures to prevent investment and employment from flowing abroad. These measures should include financial aid, securing masks for employees in manufacturing, tax cuts and stimulating domestic demand.
