The tourist area is empty, the economic outlook is gloomy, the authorities are critical, the corona virus has disturbed the world.
For weeks, most of the world focused on the Chinese plague, which has put tens of millions of people around it to avoid spreading nCoV. But in the past week, the epidemic has spread more strongly in Korea, Italy and Iran. Covid-19 currently appears in nearly 40 countries and territories, causing more than 80,000 infections and more than 2,700 deaths.
There are jokes and jokes like the wanted criminals who have confessed in China for many years because of management measures in and out of the identity of the population groups so they can no longer hide. Those who are healthy or have recovered have been sent to field hospitals because Wuhan "would rather be wrongly isolated than overlooked."
The yacht was refused entry because of fears of a pathogen on board. Numerous flight routes to the epidemic areas were deactivated. Asians in Europe and the United States were discriminated against, a cough on Chinese streets in Chicago also made people panic.
In many towns in northern Italy, roads were deserted, people rushed to buy hoarding and entertainment activities were canceled. Quietness enveloped the Daegu epidemic in Korea. Shops and restaurants were closed, train stations, markets and supermarkets were empty. Only a few dare to go out but wear masks and gloves. Iran also canceled religious events due to concerns about the epidemic. Some countries, including Vietnam, must close schools across the country or in regions that are epidemic centers.
The power of Chinese consumption and production affects Asia, North America, Europe and beyond. Manufacturers around the world are bound to China by complex supply chains where factories are responsible for supplying raw materials or finished products. Now, the Chinese court has led to a decline in demand for goods and services in this country, many factories and companies closed in China.
In the US, General Motors warned that the lack of Chinese-made parts could slow assembly lines at SUV factories in Michigan and Texas. Apple said it could not reach its revenue target for this quarter because the factory closed in China. In Europe, container ship operators warned of reduced profits when dozens of trains from China were canceled. Many officials and economists say the disease could cripple global production, costing the world $ 1,000 billion, according to the WSJ.
The majority of cases in Italy have been recorded in the northern Lombardy region. The capital of Lombardy is the financial center of Milan. Fiat Chrysler is located in western Milan, while other carmakers, including Ferrari, are in the southeast. Milan is also home to many luxury manufacturers.
In South Korea, consumer confidence fell in February to a six-month low. South Korea's Deputy Finance Minister Kim Yong-beom said yesterday the translation "is a major concern, which will limit the momentum of the new economic recovery rekindled late last year".
"A sharp increase in infections outside of China increases the risk of a global economic recession in the first quarter," said Kim Mundy, currency strategist at Commonwealth Australia.
"When the epidemic was confined to China and neighboring countries, it was considered an Asian economic problem," said Kevin Giddis, chief strategist at US financial services firm Raymond James. "But now the virus has spread to Italy making it a European problem and possibly a global one, upsetting the supply chain for months or years to come."
According to forecasts of the International Monetary Fund (IMF), the Covid-19 epidemic could reduce global growth by 0.1% in 2020. Meanwhile, China's growth is forecast to fall to 5. , 6%, 0.4% lower than the forecast made by the IMF in January.
The corona virus has a serious impact on the tourism industry, especially in Asia. Some economists think that airlines are expected to lose about $ 29 billion in revenue. Southeast Asian countries have invested heavily in resorts and casinos to attract Chinese tourists. Now, airlines, hotels, and travel agents take requests to cancel schedules so fast, not only from mainland Chinese but also Western customers who are concerned about the epidemic in the area. field.
According to an analysis by Animesh Kumar, tourism director at London-based research and consulting firm GlobalData, the countries that rely heavily on Chinese tourists include Vietnam, Thailand, Cambodia, and Malaysia. and Singapore, each country is expected to lose at least $ 3 billion in tourism-related revenue.
A report published last week by Hopper, the airline and hotel booking app, showed a drop in US travelers' search for Asian flights to Asia last week. Their analysis showed that demand for flights to Malaysia, Singapore and Vietnam decreased by about 20%. Americans turn to looking for more domestic destinations.
Not only affecting the economy, corona virus also affects political events. China decided to postpone the parliamentary session, which is scheduled to open in early March, an unprecedented move for 25 years. Even in 2003, when China was fighting the SARS epidemic, parliamentary sessions were held as usual.
"This is a fairly strong move," said Jane Duckett, director of the Scottish Center for Chinese Studies at the University of Glasgow. "They obviously seem very, very worried."
US-China relations, which have been unsettled by trade wars and superpower competition, have become more strained since the outbreak. The US State Department raised travel warnings to China to the highest level, urged citizens not to go to China and demanded that all citizens return from Hubei province in isolation within two weeks. The US also refused entry to foreigners who had been to China within the last two weeks.
China has criticized the Trump administration for overreacting, accusing Washington of spreading fear and panic. But Derek Scissors, an economist at the American Enterprise Institute, points out that not only the US but other countries have also ordered restrictions on travel to China. "China is more sensitive to the US border than any other country because it is a global power," Scissors said. "If Burundi, Belgium or Botswana close the border, it doesn't really matter."
Evan Medeiros, Asia adviser to the US National Security Council under President Barack Obama, said there was always a degree of distrust between Washington and Beijing that it was difficult for them to work closely. in the fight against epidemics.
The Covid-19 translation was considered a test with Xi, the Chinese leader who concentrated the most power in his hands since the time of Mao Zedong. Although this gives him great control, it also means that every crisis is a test of his leadership.
The Chinese public exploded in anger after Dr. Li Wenliang, who warned of the virus early, died in early February. His death reminded them of China's slow reaction to a new outbreak. The shortage of medical supplies, exhausted doctors and the lack of beds also make many people angry.
The move came as international media emphasized the absence of Xi in the early stages of the epidemic. "This is unprecedented. It seems that he is defending himself, explaining that he has done everything in his power to lead disease prevention," said Wu Qiang, principal analyst. ruled in Beijing, said.
However, Duckett said that Xi will take more time to regain public trust. "When a person is responsible for everything, if something goes wrong, they are responsible," she said.
Outside of China, other governments are also raising doubts and criticizing how to deal with the epidemic. Iran detected the first two cases on February 19. In less than a week, the number of infections rose to 95 and 15 people were killed. Many have speculated that Iran may have concealed the situation. Iran had a reputation problem when only two months ago, it initially denied involvement in the Ukrainian plane crash but later admitted to shooting the wrong plane.
Congressman Ahmad Amiri Farahani on February 24 said at least 50 people were dead. The first case was discovered more than two weeks before officials admitted. However, health officials rejected this.
In Japan, criticism was primarily directed at the way Japan handled the outbreak on the Diamond Princess yacht, quarantined at Yokohama port on February 4–19. The quarantine measures are not done to the destination, the mode of implementation is constantly changing and passengers are not fully cared for, resulting in nearly 700 people on board infected with the virus, 4 died.
Kyle Cleveland, a sociology professor at Temple University Tokyo, commented that "Japan is sometimes a victim of its own capabilities". "Normally it is a well organized society and operates smoothly in every respect. And when there is a problem of 'going off the rails', they think that just need to apply normal methods everyday. is enough, "he said. "But special situations require a special response."
In South Korea, the number of infections has increased exponentially in the past week, indicating that the country has missed the "golden time" to contain the epidemic and that Covid-19 could continue to explode on a larger scale during the period. next time. Many Koreans criticize the Moon Jae-in administration for belittling the dangerous nature of Covid-19.
"The epidemic is out of control while the President is still engrossed in optimism, declaring that the epidemic will not last," Chosun Ilbo wrote in a commentary. "If we can't stop the virus, the whole country will be in danger."
"We have to admit this is an unprecedented experience," said Lisa Adams, a medical expert at Dartmouth University.
She said there was a lot of uncertainty about the spread of the virus. "If only we had a crystal ball to see how things would work out and which countries would be affected next. Everyone was very worried," she said.