In the News: Economic Contraction; Renault Exit; and Blockchain Standards
April 20, 2020 | BY
Vincent ChowChina's pandemic-hit economy contracts for first time in decades in Q1; Renault exits China joint-venture amid weak sales and worsening outlook; new national blockchain committee launched with several tech giants involved
Chinese economy shrinks for first time due to coronavirus
China's economy has contracted for the first time since quarterly gross domestic product figures were first reported in 1992. The National Bureau of Statistics (NBS) released data on Apr. 17 showing a 6.8% drop in Q1 from a year earlier and a 9.8% drop from the last three months of 2019. The NBS data also showed a 10.2% drop in manufacturing and a 15.8% drop in retail sales.
The outbreak of the novel coronavirus peaked in China in early February, when most of the country was put under strict lockdown. Since then, restrictions on work and travel have been gradually lifted, but some still remain including quarantine measures for inbound travellers to prevent a second wave of imported cases from abroad. The NBS has said that the government will unveil more measures to support economic recovery. Earlier in April, the State Council announced the establishment of 46 new integrated pilot zones for cross-border e-commerce with favorable tax exemptions and rates for exporters.
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