Quick Comment｜Full Efforts on Economic Recovery and Development, COVID-19 Containment Alternating to External Importation and Internal Rebounding
Dahai ZHAO, Jingjing YAN
SJTU-Yale Joint Center for Health Policy
Currently, China's epidemic prevention and control situation continues to improve. The Party Central Committee and governments at multi-levels have fully exerted the determination, cohesion, and action of the accountable government in response to major public health emergencies. This is reflected in the fact that the Party Central Committee always takes the safety of the people ’s lives as the primary responsibility and directs the whole country to act as a whole; governments at multi-levels make good use of the prevention and control headquarters and the hub of the joint prevention and control mechanism, and deal with the procedural issues and structural aspects of the epidemic; the national medical and health system adheres to the Absolute Sincerity of Great Physicians and adheres to the scientific basis to face difficulties and difficulties, and has achieved good results in the face of the epidemic exam, ushering in a great situation of COVID-19 containment.
Although the epidemic situation of COVID-19 pandemic in countries all over the world is getting more and more severe, the trend of the outbreak in the world is difficult to reverse in a short time. However, with the decrease in the number of inbound personnel in China, this will inevitably reduce the pressure on the prevention and control of the outbreak of inbound personnel in major cities in China, and will also enable cities to have the energy and ability to carry out outbreak prevention and control management of inbound personnel in a comprehensive and closed-loop manner to ensure that there will be no second outbreak in China. We must focus on external defense of imported cases and internal defense of relapse cases, and keep the situation of our country's epidemic prevention and control continued to improve." Alternate from "internal anti-spread, external anti-export” to "external anti-import, internal anti-rebound" in time.
Under the premise of not loosing prevention and control, China will inevitably resume production and restore economic and social order. The details are as follows: First, the focus of epidemic prevention and control will be transferred to the management of inbound personnel, and Wuhan will be return to normalcy as soon as possible. The epidemic situation is under control in other regions of the country. As of March 28, the number of new overseas cases increased by 60,000 in a single day, and 649 cases have been imported in China. As international containing COVID-19 suggests reasons for pessimism, the focus of our country's epidemic prevention and control should be shifted to the management of entry personnel and the prevention and control of imported cases abroad. Specifically, strict procedures for the prevention and control of epidemic situations should be adopted for immigrants in any way. With the decrease in the number of single-day entry personnel in China, the precise prevention and control of entry epidemic situations has become feasible. For example, Shenzhen has implemented full coverage of nucleic acid testing for all inbound personnel (including Hong Kong, Macao and Taiwan regions, including transit passengers) from Shenzhen port from 6:00 on March 27, and implemented centralized isolation medical observation for 14 days; starting at midnight on March 28, Shanghai has implemented a 14-day quarantine for all people who enter the city, cancelling the original distinction of yellow and green standard for entry personnel according to their health code. For the rest of the country except Wuhan, we should, on the basis of prevention and control, release traffic control in an orderly manner as soon as possible, provide measures to facilitate enterprises' resumption of work and production, and provide financial support to promote producing. Follow-up investigation of the resumption of production and production of enterprises, the establishment of special assistance channels and collaborative assistance mechanisms based on the principle of territorial management, giving mutual adjustment and necessary guidance to the affected units, through targeted reduction of taxes and targeted subsidies, real money flows to the vital links of economic development and into the hands of enterprises and unemployed people affected by the epidemic. By promoting multi-channel employment, advancing entrepreneurship to promote employment, and ensuring the protection of people in difficulty, we should take multiple measures to help enterprises and unemployed people cope with the impact of the epidemic.
Second, some companies are encouraged to make short-term transitions to produce medical protection and other materials needed by countries around the world, but we must pay attention to preventing blind transformation and expansion. Affected by the current high international epidemic situation, some countries and regions are facing an increasingly acute shortage of medical protective materials. For example, the American Hospital Association is the largest hospital industry organization in the United States and represents more than 5,000 hospitals and health systems in the United States. On March 23, Nancy Foster, the vice president of the American Hospital Association, said that almost all the nations are facing shortages The problem is lack of multiple protective equipment; New York City Mayor Blasio even warned that if the shortage of materials could not be alleviated, it would not be able to save the life that had hoped to survive. In response to the shortage of international medical protective materials and the moment when other manufacturing industries are relatively frozen, some enterprises have joined the ranks of producing medical protective materials under the government's call. Now, it is possible to encourage some enterprises to make short-term transformation to produce medical protection equipments and other materials and protective materials circulation industries needed. On the one hand, medical protection equipments are the minimum line of defense for medical personnel in the epidemic, can they fight the global anti-epidemic resistance, even a period of protracted battle, to protect global medical personnel, the necessary pensonnel protective equipments can be said to play an important role in the success or failure; On the other hand, considering the current technology, the property of contaminated medical protective materials that cannot be recycled, the short-term medical protective materials have a huge gap globally. Through the production of medical protective equipments, enterprises actually achieve full-load resumption of production, and release the company's production capacity, which may drive and promote the consumption and production operation of other materials. Therefore, the production of medical protective equipments can be used as a choice to promote economic recovery and increase the enthusiasm of enterprises of production. At the same time, local governments should take precautions. In the long run, a single production model and a bunch of economic drivers are not conducive to the company's own sustainable development and the overall health of the economy. In this regard, local governments should promptly do related research and guide the work and beware of the blind swarming of the production industry, which will adversely affect the local economic balance.
Third, implement alternative plans to maintain business operations. Faced with the irreversible global spread and impact of the epidemic, and the profound changes in the global industrial chain, circulation, and consumer terminals behind the epidemic, enterprises that resume work should resume and adjust their plans based on their own circumstances and industry characteristics. On the one hand, enterprises should make good use of the support and financing policies of the country and the financial sector in a timely manner, and timely grasp the guidance and information in the future economic situation; gain priority and advantage in round market competition. Encourage enterprises to take the initiative to broaden the induced consumer demand, polish their own production quality, and enhance the degree of differentiation, attention and trust in trade competition.
Fourth, make good preparations to prevent financial crises. Due to the impact of the international epidemic and the macro economy, investors are concerned that the impact of the epidemic will affect the fragile global economic growth and corporate profit prospects, resulting in continuous cash flow shortages in all walks of life, triggering a systematic chain reaction, and global financial market experience Suddenly a huge shock. Unlike the financial crisis of 2008, today, American-style lending support and bailout plans, including primary market company credit financing, secondary market credit arrangements, and fixed asset-backed securities loan instruments, are very passive, and the effectiveness of the plan remains to be seen observed. However, the impact of economic shutdowns and financial shocks is not evenly distributed in the whole society. Therefore, China must strengthen supervision of the financial industry to prevent the resulting financial crisis and a series of social impacts.
(Editor: Jingyun Li)
Originally published in “21st Century Business”, 2020-03-31 07:00