Topic: CORONAVIRUS IMPACT ON CHINA ECONOMY - page 3. (Read 838 times)

this isnt about bitcoin but the thread here tackles also economic business in china   . the virus really have a major impact on thier local economy because the importing and the exporting of goods is strictly prohibited now plus the migration or people too  .jobs were now affected as well  .  during the virus outbreak the price of bitcoin rises too  and i think its not a co incident  because before when there is no outbreak , the price hardly move . people could be foccusing on other things other than foccusing on thier bitcoin accounts  .

This virus somehow affects China's economy. Foreigners will be afraid to travel to China and some country are banning flights from and to China and it can affect their economy since tourism is a factor that helps a country to grow their economy, including their exports. But since their country is one of the strongest among all, they can easily recover from it. So it won't drastically drag their economy down. I think their research and development can find solution for this virus outbreak.

As for crypto, it won't give much impact to the market unless people would be panicking. It's the China's economy that will be affected by this but not totally crypto.

I feel like it will have a short term financial trouble for China but in the long term they won't have a big issue. China is literally the cheapest place you can make your products from and it won't change for years to come as long as people do not care where it comes from.

I have a friend who recently got funding for starting his own company and he is making a board game, he was dealing with a Chinese manufacturer to get the game ready and the quality was actually better than anywhere else he looked, now that the corona thing started and it is bad for business to get it made in china, dude had to find another country and only country with remotely same level of quality was in Europe and he will have to pay 3x the amount he normally would have paid in China, and it is not even as good as the Chinese, just closer than other places.

So, when all of this is over, people will certainly go back because unlike the stigma of Chinese products, it turns out the quality is actually very nice there and it is still a lot cheaper than anywhere else with better quality.

You are right there will be a huge impact if it is not controlled as soon as possible. It will have an impact on several ways first the money spent on the disease containment is an added expense along with their usual spending budget, of course, it is for the people and their lives but if we see with economy perspective a lot of money will be spent on it.

Several people lakhs of people forced to stay inside the house their income will be affected thereby decreasing the sales of the goods which will impact all the company's profits and sales figures.

Apart from the sales, there will also be a huge impact on production due to unavailable workforce or delay in various other management processes all these affect the production which might impact the delivery schedule, etc So all these will slow down the economy and have an impact on the GDP growth.

There's even recent news in an article stating that china has printed 1.2 trillion additional paper money in circulation. This goes to show how can a centralized authority manipulate the fiat value and interest rates.

Maybe this could be one of the reason why a decentralized asset like bitcoin is increasing. This price pump always happens when there's global crisis or FUD, when people thinks that their economy might collapse and their fiat holdings might loss value.

The virus affects the economy of China, knowing that they are one of prominent supplier of every garments around the world. With this issue regarding to Corona virus people who are working with them and having good business are minimizing the trade and transactions that being deal. If this problem  continue to spread all over China it will make a huge impact in a down side of their economy.

I don't see any correlation between what is happening on China and crypto in general. Maybe because of the sentiments and the fact that most of the mining pools are coming from China or its just the halving itself that makes the price of Bitcoin higher .

In terms of the economy, yes it has a huge impact on them. When the SARS spread many years ago, their economy went down drastically.

Now they don't want this to happen again so what they are doing? People can't access to the internet anymore and those people who are sharing the true information of what is happening right now to China is being hunted already by the police. They are doing this to prevent what happen to their economy when SARS spread across the world.

Anyway, I commend the Chinese Government as they are doing everything just to stop the virus to be spread. Now China is suffering another disease again in Bird Flu. How can they handle this right now?

For me, this is just a coincidence.

I mean what is the connecrion of having an outbreak of coronavirus to the price of Bitcoin and other cryptocurrencies? If there will be a connection between Bitcoin and the outbreak, I think that would give a negative effect to the price since people would sell their cryptocurrencies to use against the outbreak.

I am pretty sure that the coronavirus which is happening right now will be have a strong affect to the economy of China because we all know that if a virus especially a dangerous virus get close to your country then a lot of people will be scared so people and animals will get some virus also and this would probably become a problem so when they die the economy of the said country will dump.

A lot of people already died in China, specifically in Wuhan. And in some countries, they are starting to be cautious of the virus since the number of casualties and the number of people getting confirmed infected of the virus is increasing. China's economy had been stricken hard due to this. I believe there is an indirect correlation between the economy and the crypto market.

Investors decision in regards to crypto investment will depend and is affected by the current state of the economy. It may not significantly affect the market but still it can have an impact.

I agree with you that China and China's economy are under threat due to coronavirus It has spread to about 14 countries in Wuhan, China. 106 people died in China Researchers believe that around six million people can be killed if the virus spreads around the world. If the whole country is spread they will lose their working power and the economy will be disrupted.

There is no correlation between the coronavirus and the ups and downs of the price of bitcoin. The Coronavirus happens to be attacking China, whose economy is slowing due to a trade war. The key question now is how bad is the impact of the coronavirus on the Chinese economy. It is difficult to get reliable data from China. Usually, during the Chinese New Year period, it is difficult to measure how many people are working or producing goods.

The impact of the virus that has made large cities fully or partially isolated. Isolation can harm growth if it lasts for a long time. As an exporter of fresh seafood products (mud crabs, pearl lobsters, and red coral trout) to China and Hong Kong, I really feel the impact of the Coronavirus, which is falling demand and price damage, usually before the Chinese New Year prices go up but this year prices are down.

What is clear is that various measures to control the virus will incur a lot of costs that will affect the ignition of the Chinese economy in the first quarter and will have long-term effects. The extension of the new year's holiday period also affected output productivity in the first quarter. Isolation causes limited transportation channels and will have an impact on tourism, transportation, retail and food distribution throughout China. So in essence, state spending is increasing but revenue revenues are reduced because of the Corona outbreak.

Hopefully, the high impact of the Coronavirus is only short term and can be overcome immediately.

When we are talking about a country's economy, this kind of epidemic definitely ruin their economy. Imagine, their country freeze for a while; the businesses are on halt, the financing is affected and as well as manpower. So technically speaking, their economy in this time is on decline for sure. However, the crypto market is not working the same with the other, it will not be affected or at least only got minimal damage since it exists in th Internet. Actually this might be in favor of crypto because Chinese investors (whether whales or small) are likely forced to isolate inside their rooms and face the monitor which means more time for them to deal with crypto .

It makes everyone wonder if there's really an effect to the bitcoin economy about this virus but until now, there's no validation with that. Let's go back to China's economy. Because of the closure of other borders and isolating the affected areas, this is now one of the effect of it;
Chinese stocks suffer worst day since 2015 on coronavirus fears

And recently Chinese governments printed more money to survive a critical moment.
That obviously lead to yuan weakening and with that being said we already can tell - coronavirus affected China's economy at this point

It will have an impact on the economy, right now the province of Wuhan is lockdown and there are no ongoing trade or business going on on that city, and the whole Chinise business all over the globe and on China suffers because they cannot send their goods and workers cannot work because of this epidemic and other nations are restricting the flow of Chinese citizen and products in their country.

I suppose in this case everything will depend only on how much China hides the scale of the epidemic.
Judging by what official data we see, there is nothing to fear, not many people are infected, not many people have died.

The mortality rate of the virus is only 1%, which is quite small. In the same flu, mortality is much higher.
Therefore, I do not think that the virus will hit the Chinese economy hard, in any case, judging by official data.

I don't think this is going to be temporary and not only will affect the Chinese economy.We all knows that still there is no cure found for the virus so its still spreading and all over the world the reports of affected people keep coming.

China exports lot of goods over other countries so if their country stops doing this then the prices of these goods will increase but for other country people it may not be affordable to buy and also the tax income from those products will get affected for importing countries.

I don’t know that for sure. Before the start of this year the predictions were that the increase of Bitcoin will come from the halving. And those predictions have been made before the Corona virus outbreak. During the outbreak some people started saying that there is going to be a fall in the Bitcoin price due to the Corona virus and that never happened, instead the price of Bitcoin kept going up and then they started saying the situation will make the price of Bitcoin to increase lol.

People are seriously confused. I would say that this has nothing to do with Bitcoin, the only thing I think is causing her price to go up is due to the Halving that’s approaching.

Corona virus impacton China's economy will be temporary. But if you think that there will be no impact on the economy, then you are wrong. You can start with the Shenzhen Stock exchange index and Shanghai stock exchange index.

Shenzhen stock exchange:
22 Jan - 11072
3 Feb - 9779

Shanghai stock exchange:
22 Jan - 3060
3 Feb - 2746

However, this trend is not going to last forever. The impact will be temporary!