Business

The Wuhan virus is the last thing China's economy needs right now

January 24, 2020 6:25 pm

China’s economy is slumping and the country is still suffering the effects of the trade war with America. An outbreak of a new and deadly virus is the last thing it needs.

The Wuhan coronavirus — which has killed 17 people and infected nearly 600 so far — has already roiled Chinese markets and thrown plans for the upcoming Lunar New Year holiday into chaos for millions of people.

If Beijing fails to contain the disease quickly, it will cause more pain for a country that was already trying to stave off a serious downturn by trying to encourage more consumer spending. An epidemic could have the opposite effect.

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“If you’re trying to rebalance the Chinese economy, this is one of the last events you want to see,” said Logan Wright, director of China markets research at Rhodium Group.