Factcheck: Is China making money from the COVID-19 outbreak?

FURTHER INFORMATION

This video clip of a news reporter discusses whether China is now profiteering off the global health crisis, by manufacturing and selling medical supplies to countries afflicted with the Covid-19 illness.

Like many conspiracy theories about the coronavirus (SAR-COV-2) this video mentions the 1999 Chinese book ‘Unrestricted Warfare’. Written by two Chinese People’s Liberation Army officers, it outlines unconventional warfare strategies (like biochemical attacks) for an army to use in order to beat a more advanced opponent, such as the United States. Some conspiracy theorists are claiming that the Covid-19 outbreak is proof that the Chinese Communist Party is implementing a plan for ‘world domination’.

Like many countries around the world, the Chinese Government has announced extensive public financial support packages to support businesses and workers. As Chinese cities were the first to go through the lockdown procedures, they have also been some of the first to begin easing restrictions. Some factories and manufacturing plants have therefore been allowed to reopen and restart production. The Chinese economy has been badly damaged however, as it relies heavily on its factories and manufacturing plants for economic growth. The economy has contracted 6.8% in the last three months, with the FT saying these are, ‘some of the worst figures ever reported by China, suggesting that President Xi Jingping’s attempts to expedite an economic recovery have not had the desired effect.’ Many analysts are also expecting China to be hurt if other countries cut imports as demand falls following the pandemic.

In many countries across the world, public and private bodies have looked to retool their operations to supply healthcare equipment and medical supplies, which are often in short supply. In the UK for instance, fashion designer Burberry is making medical gowns, car manufacturer Nissan is making medical visors, and household cleaning product manufacturer Dyson has retooled lines to produce ventilators for critically ill patients with Covid-19. 

The economic impact of this global pandemic is likely to be very severe, therefore governments will be looking to restart their economies as soon as they feel able. Many companies are expected to make large losses this year due to the social distancing measures brought in to attempt to slow the spread of the virus. In fact, governments are now worried that their key industries may be brought up cheaply by foreign powers. However, there will be some companies that do well out of the Covid-19 outbreak, such as supermarkets, entertainment technology like Netflix, or video communications technology like Zoom, which was recently valued as a $42bn company as the share price has surged.

SOURCE

FT: Chinese economy suffers record blow from coronavirus

BBC: China’s virus-hit economy shrinks for the first time in decades

FT: Chinese mask entrepreneur reaps $1.9bn coronavirus bonanza

FT: Australia tightens investment rules on foreign takeovers

Reuters: ‘More Burberry gowns to come’: luxury brands turns effort to coronavirus fight

CNN: James Dyson designed a new ventilator in 10 days. He’s making 15,000 for the pandemic fight

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