AllvertaGlobal – The Chinese government held an emergency meeting and invited more than 100 thousand participants to discuss the economic recovery process that was disrupted due to the lockdown amid the spike in Covid-19 cases.
On Thursday (26/5), this meeting was attended by officials at the provincial, city, council, and Premier Li Keqiang levels.
Li said China’s economy had been badly hit by the COVID-19 pandemic. In fact, China’s economic situation is now even worse than in 2020.
This can be seen from several economic indicators, such as the unemployment rate, production by industry, and cargo transportation.
To that end, Li asked the government to implement the 33 economic recovery measures proposed by the state council.
Some of these measures include easing lockdown policies, lifting restrictions on trucks traveling from low-risk areas, increasing tax returns, providing loans to small businesses, and providing emergency loans to the airline industry.
During the pandemic, China implemented a strict zero-covid policy to eradicate all chains of transmission with border policies, mandatory quarantines, and lockdowns.
However, these efforts have been in vain since the omicron variant hit China. The reason is, the process of transmitting Omicron is faster even though China has implemented a lockdown.China’s efforts to eradicate COVID-19 have had a very bad impact on the economy. The unemployment rate continues to soar to its highest level since early 2020.
In addition, many companies have temporarily suspended their business, including Tesla and Volkswagen.
No doubt, the IMF cut its forecast for China’s economic growth from 4.8 percent to 4.4 percent this year.