Political, Economic Dimensions of Coronavirus Outbreak

2020/02/19 | Note, political, top news

Strategic Council Online: If Coronavirus continues to spread serious damage will be inflicted on the Chinese economy. Meantime, and if the US does not cooperate in controlling the disease, rumours that the US benefits from the spread of the virus and its impact on the Chinese economy, as well as its magnification, are acceptable. Abdolreza Faraji Rad - Expert on Geopolitics

The Coronavirus or in other words the Corona psychological warfare these days has become a tool of pressure on Beijing and the United States is trying more than any other country to pressure China as the origin of the virus.

It should be noted that so far many viruses have been spread around the world and this time the unknown virus comes from China. Since China has a large population and their trade is significant in particular with the Third World countries, it has caught the attention of the global public opinion.

Another issue is that there has been some news that Americans may be involved in spreading the virus in China; however, the Chinese have not yet spoken out about it and have reported it in the news and some media. We can’t talk about this until a document is released, but one fact to bear in mind is that for more than a decade, the US has been focusing on China because of its high economic growth and has placed pressures on the country.

Since Donald Trump came to power in the White House, these pressures have been multiplied by imposing heavy tariffs because Americans have been unable to contain the economic growth and expansion of the Chinese economy that is getting close to the American economy. China’s economic growth is expected to overtake the United States in the next few years, making it the number one economic power. One reason these rumours are raised is that the United States is seeking to halt China’s economic growth in other ways.

As mentioned, of course, there have been no documents published in this respect, and Chinese officials have not made any comment yet. But the reality is that the virus has greatly damaged the Chinese economy. It should be noted that Chinese tourism is very active and millions of people visit the country annually and this has created high employment, but now the Coronavirus has seriously damaged the Chinese tourism.

On the other hand, many Chinese factories have cut output or stopped production. Meantime, the country’s economic growth has been declining and the global economy has also been hurt, especially those countries that own oil and China buys energy from them are now suffering losses.

In this regard, attention should also be paid to the Chinese marginal costs which have increased nowadays. In fact, China has spent a great deal of money on healthcare to control the Coronavirus. At the same time, the Chinese military has also taken action to assist the government’s health services. So the virus is costing China as high as a war.

When we observe that the Chinese economy is experiencing a slowdown or has been hurt the idea of a possible US clandestine role or its magnification of the incident is strengthened. Of course, the magnification of the event by the United States is quite obvious and it seems that the US move is intended to further hurt the Chinese economy.

Eventually, it is likely that funds coming to China from other countries, including the United States, will no longer be transferred to China, and even foreign capitals may be sent to the United States instead of China.

Of course, it will depend on whether they can control the disease and the virus or not. It is noteworthy that if the spread of the Coronavirus continues, serious damage will be done to the Chinese economy, and if the US does not cooperate in controlling the disease, rumours that the US benefits from the spread of the virus and its impact on the Chinese economy, as well as its magnification, are acceptable.

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