Desmond Lachlan writes the following in The Hill:
In the best of times, an economic cardiac arrest in China, the world’s second-largest economy, would not be good for the global economy. But these are far from the best of times. This makes it all the more difficult to understand both the financial markets’ and world economic policymakers’ complacency about the real risk of a coronavirus-induced global economic recession in the months immediately ahead.
By now there should be little doubt that China is experiencing the equivalent of an economic cardiac arrest.
The number of those infected with the coronavirus is already some ten times higher than was the case with the 2003 SARS epidemic. At the same time, in an effort to bring the epidemic under control, around 150 million Chinese residents remain under lockdown. That is preventing Chinese factories from returning to normal production schedules, causing havoc in the Chinese transportation system and inducing Chinese consumers to scale back on their purchases.