Facing both an epidemic and economic recession, China finds itself truly stuck between a very large rock of economic recession and an exceedingly hard place of a deadly epidemic. And worse, there is no clear path out of this awful predicament.
Outbreak Still Expanding
At the moment, there is no end in sight to the outbreak and no good options to stop it. Even extending the Lunar New Year holiday by two weeks had little or no effect on the spread of the pathogen. Nor did China’s massive lockdowns of entire cities—up to 70 million people, a population greater than that of Great Britain—halt the progress of the outbreak.Struggling Economy Threatens Stability
On the other hand, China’s economy is floundering. At first, President Donald Trump’s tariffs dampened output and GDP. But as of January, COVID-19 has brought much of the economy and the nation to a standstill. That has huge ramifications for China’s economic viability and social stability.Not ‘Business as Usual’
As a result of the viral contagion and its effects, millions of workers are staying home in self-quarantine or avoiding the cities out of a very real fear of infection. Supply chains for global customers and industries are now under duress. Delays in production are by now a given, but additionally, Beijing has announced that it may not be able to meet the “phase one” trade agreement requirements. That could trigger a resumption of tariffs on Chinese products.Disturbing Admissions
But Beijing’s ordering of workers to get back to the factory isn’t only callous, it’s foolish. Forcing people back into factories puts millions of workers’ lives at risk. And, doing so can only result in the further expansion of the pathogen. Prioritizing the boosting of GDP at the expense of potentially millions of lives is just one more misstep by the CCP in a series of them that led to the outbreak in the first place.Staggering Stupidity
Given these dire and dreary facts, does it make any sense whatsoever to increase human-to-human exposure at this time? Does it sound reasonable to compel millions of people who left the cities for rural areas to return to factories where the probability of infection is considerably higher?Too Many Unknowns
Chinese authorities admit that they don’t know everything about the virus, but by latest accounts, the COVID-19 virus can live on a surface at room temperature for nine days. Measles, another highly contagious virus, can only live for two hours outside a host.Creating More Victims?
Not surprisingly, some workers aren’t returning to work. In response, Beijing has announced harsh punishments for those who don’t return to work as ordered. But if the workers do return, it will likely be a short-term fix to the GDP problem—if even that—and a long-term curse for millions of people.But the Party’s colossal hubris and bitter mistakes born from it may well serve a greater purpose in China’s long history. It may finally be the undoing of the CCP leadership and what it truly values, and—spoiler alert—it isn’t the average Chinese workers that the Party says it’s out to protect.
The CCP leadership knows that as both economic conditions and the epidemic worsen, the chances for unrest among the masses grow. The focus of their anger can only be directed at the all-powerful, all-knowing Party that has failed the country. That’s a drama the CCP would like to avoid, because they don’t think they’ll like how it will end.
It would seem that survival is top of mind for Beijing. But that concern seems to be limited to the survival of the Party. News flash to the CCP: the COVID-19 virus doesn’t care.