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Sunday, February 2, 2020

What happened to those cities under lockdown in China?

The markets, streets and malls are all empty and look like a ghost city.

When there is no human activity, there is no economic value.  Therefore, the 16 cities under lockdown with an estimated 60m people will be greatly impacted economically because China is a consumption-led economy now.  Furthermore, China is being increasingly ostracized by many countries as the Chinese are being denied entries.  The world is looking at China Chinese as locusts now.

There is also some speculation that the fatality rate of the coronavirus is much higher than stated because China is labelling the cause of death as visceral organ failure for those who die due to the virus.  The economic consequence will be much greater in 2020 than the SARS in 2003 because China's GDP in 2003 was only US$1.66T.  Moreover, China's economic contribution to the world is now at 39%.

http://sg-stock.blogspot.com/2018/10/china-gdp-was-growing-at-65-in-q3-2018.html

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