Shen Kunrong: Promote Enterprises to Resume Work and Production in Good Order, and Maintain the Stable Development of Economy

Release time:2020-02-29Author: Shen Kunrong

Under the personal command and deployment of General Secretary Xi Jinping, and the joint efforts of the people across the country, the prevention and control of the epidemic has been vigorously and orderly advanced. At present, the spread of the epidemic has been initially contained, and the prevention and control work has achieved initial results. The next step is to implement the strategy of "zoning and grading precise prevention and control" in key areas of non-epidemic prevention and control, not to implement a "one size fits all" approach, to restore normal production and living order as soon as possible, and to coordinate epidemic prevention and control and economic and social development. This will ensure the completion of a well-off society in an all-round way this year and the successful conclusion of the 13th Five-Year Plan.At present, the logic of the impact of the epidemic on China’s macro-economy is as follows: The impact of the epidemic on manufacturing companies—difficulties in resuming work and production: difficult to rework, difficult to support, difficult to operate, specifically manifested as labor shortage. The specific manifestation of the shock is labor shortage, insufficient supply of intermediate goods, and deterioration of the business environment. Difficulties in resuming work and production have brought negative impacts on macroeconomic operations: The epidemic has already had a negative impact on the operation of the macro economy. It may trigger a wave of closures and unemployment of small and medium-sized enterprises, destroy the ecology of the manufacturing industry, and cause unstable market expectations and insufficient market confidence. Therefore, this article proposes several countermeasures to overcome the disturbance of the epidemic under the current situation, generally speaking, it is necessary to base itself on the present, make overall plans and take all factors into consideration; focus on the long-term, and deepen the reform.