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| China-Japan-Koreas |
| China: A Brutal Post-Coronavirus Economic Reset |
| 2020-02-12 |
| Seeking Alpha via Instapundit Summary
Chinese and foreign businesses will reduce operations while developing the type of emergency protocols and disaster recovery plans reserved for politically volatile countries in the extraction industries for future similar. China’s government lack of credibility and inability to act rapidly to national emergencies may have planted the seeds of Hong Kong activism amongst the Mainlanders. ...With every business adversely impacted by the coronavirus outbreak, it's unlikely that any of them will want to return to pre-outbreak levels because of unprecedented demand destruction across all industries. Recovery and ramp-up will be painfully slow, and businesses will be justifiably quite cautious because it will be impossible to assess the cross-section of inter-connectivity and their unique industry-specific operational and financial abilities and needs. The challenge is that businesses usually face a supply issue, rarely a demand collapse which makes it difficult to project growth. No business is bad business. ...Chinese businesses may be more pragmatic and put in place internal protocols to handle future problems up to the point that it doesn't make the government lose face with respect to their inability to handle such dilemmas. The threshold will probably be not to distribute any future protocols rather they will be held privately by a tight trusted circle of executives. Foreign businesses operating in China will reduce operations, develop emergency protocols and disaster recovery plans usually reserved for politically volatile countries. Employee evacuation plans are par for the course typical for companies operating in the extraction industries and will henceforth become standard procedure in China, the # 2 economy in the world. |
| Posted by:g(r)omgoru |
| #6 Magic 8-Ball says: "Not F'n Likely" |
| Posted by: Frank G 2020-02-12 19:28 |
| #5 between the trade conflict and the virus a lot of companies will be working on 2nd sourcing and this will hurt China however, one relatively easy thing China could do (except for the cultural resistance) would be to ban the kind of live animal markets they currently have another easy thing to do (except for the ego of the leadership) is to reduce the high level of govt revenue going to the military |
| Posted by: lord garth 2020-02-12 15:55 |
| #4 I wonder if China would be so audacious/evil as to create a deadly virus, infict it their own population for the purpose of thinning out the herd to deal with growing economic problems? In other words population control. |
| Posted by: JohnQC 2020-02-12 15:46 |
| #3 climate change = chicken little coronavirus economic impact = eggs in one basket Two and a half thousands years and we still don't grasp the basics. |
| Posted by: Procopius2k 2020-02-12 15:40 |
| #2 /\ A 'crisis' of their own making being no exception. |
| Posted by: Besoeker 2020-02-12 08:53 |
| #1 The usual response of authoritarian governments to a crisis is to double down on authoritarianism. |
| Posted by: Matt 2020-02-12 08:49 |