Update on the COVID-19 Situation in China

Update on the COVID-19 Situation in China

How has the pandemic impacted the Chinese economy?

The pandemic brought a negative impact to the Chinese economy, especially on the traditional service industry and some labor-intensive manufacturing industries. However, China’s outstanding disease prevention measures exceeded the international community’s expectations and China has recovered continuously since March 2020. The economic impact on the Chinese market is short-term and temporary. Nowadays, China’s economy is pushing the world economy.

Figures from the General Administration of Customs show that China’s exports and imports both grew by more than 25% from January to May 2021, compared with the same period last year. Even as much of the rest of the world continues to suffer from the epidemic, China’s orders for foreign trade products continue to grow. China continues to export goods abroad, and also introduces a large number of raw materials and products that meet the needs of the Chinese market. Imports of iron ore, oil, and soybeans were no less than in previous years, while imports of mechanical and electrical goods increased 21.8 percent. The demand power of the Chinese market is growing, which will help other economies recover and give a strong boost to the global economy.

COVID Vaccine:

Up to now, China has four approved vaccines. National Health Commission of China announced on Sunday, June 20, that China’s vaccine dose passed the one billion mark, more than one-third of the doses given worldwide. CNN demonstrated that the scale and the speed of vaccination in China are unmatched by any other country in the world.

In addition to supplying a large amount of domestic demand, China has continuously contributed to foreign aid and the export of COVID-19 vaccines. China has provided more than 350 million doses of vaccine to the international community, including providing vaccine assistance to more than 80 countries and exporting vaccines to more than 40 countries, said Chinese Foreign Ministry spokesman Zhao Lijian on June 16.

Stock Market:

Influenced by the repeated outbreak of novel coronavirus in different regions around the world and the continued rise in the demand for new coronavirus vaccination, A-share new coronavirus leading stocks have also performed strongly recently. Kangsino’s A-share price (688,185) and Fosun Pharmaceutical (600196) had a cumulative 100% increase in the past two months.

COVID cases:

According to the National Health Committee, 0-24 June 20th, China’s 31 provinces and the Xinjiang production and construction corps report 17 confirmed cases of the new COVID-19, 16 of which came from abroad. One local case (in Guangdong); No new cases of death; No new suspected cases were reported.

In the past month, about 100 residents in Guangdong have been infected by Delta variant of the virus. In addition to spreading in Guangdong, the Delta strain has now spread to more than 80 countries around the world and is constantly mutating in the transmission, potentially becoming the most common strain in countries where the virus has become more widespread.

How to manage a business in China during the pandemic?

Published by the Ministry of Foreign Affairs of The People’s Republic of China on September 23, 2020, that foreign nationals holding valid Chinese residence permits for work, personal matters, and reunion are allowed to enter China with no need for applying for new visas. If the above three categories of residence permits held by foreign nationals expired after 28 March 2020, the holders reapply for relevant visas by presenting the expired residence permits and relevant materials to the Chinese embassies or consulates on the condition that the purpose of the holders’ visit to China remains unchanged. 

Chinese companies have begun to operate and work since March 2020. That’s the good news for western companies which are willing to start or continue to operate a business in China, following the trend of recovery after the pandemic. With the virus under control and the vaccine being distributed, China is open for business!

Looking to expand your business into China? Call 561-729-6508 or email [email protected] for a free consultation.

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