The Impact and Opportunities of COVID-19 in China

Recently, the coronavirus, COVID-19 has been abstracting the most impressive attention of the whole world. Until the mid-March, the number of confirmed cases achieves more than 150,000 in 152 countries around the world. This paper will introduce the impact of the virus in China and overseas. As the first outbreak place, China has suffered seriously from the outbreak of COVID-19. The impact on Chinese economy is profound and complex because of both domestic and oversea factors. However, the author suggests that the risk is also an opportunity for China. It is positive to promote some sectors in both economy and society such as the Internet industry and the response to a public health emergency.

ticed strict policies, such as city lockdown, travel ban, lockout industries. Therefore, the economy has suffered extremely negative impact which would be lasting for a long time. It can be predicted that global real GDP may reduce by 0.8% in the first quarter and 0.5% in the second quarter. In this context, the coronavirus epidemic and its associated measures reduce global real GDP by 0.4 percent by 2020 (Li, 2020). The Asian Development Bank (ADB, 2020) forecasts that the severity of the economic damage will depend on the course of the outbreak, which remains uncertain. The global economic impact ranges from $77 bn to $347 bn, or between 0.1 and 0.4 percent of global gross domestic product.
As the first outbreak country, China has already been fighting against the coronavirus for more than 2 months. The government locks down Wuhan, an 11 million population city, and lockouts the most of industries and all schools in the whole country. The whole industrial chain such as manufacturing, traveling, restaurants, and other industries have suffered great damages. Therefore, the negative impact is inevitable. However, facing the precipitate impact, people ought to pay more attention to the positive side. This paper will show both the overseas and domestic impact by the virus and analyze where the opportunity is caused by the outbreak.

The Global Impact of the COVID-19
The COVID-19 outbreak globally in March, the loss cannot be estimated easily and accurately. Outside China, the rest of the world does not prepare for the COVID-19 well. When the outbreak becomes internationalized, the global economy gains huge damages, especially in financial market. On March 12th, the U.S. stocks suffered a "black Thursday", the three major indexes all tumbles more than 9%. Both the Dow index and the S & P 500 index create the record of the biggest one-day percentage drop since the 1987 crash (360Kuai.com, 2020). Although some policies already announced by the U.S. government, the financial market still keeps declining tendency. Refer to Xu (2020), until March 16 th , the U.S. stock market experiences the third "circuit breakers" in the recent 2 years since Marth 9 th , which is the fourth "circuit breakers" in the history of the country establishment. According to CNN Business (2020) since the beginning of the year of 2020, the major America stock index, Dow, Nasdaq and S & P have already declined by 25.58%, 18.25% and 21.72% respectively, until March 18 th which can be shown in Table 1 Colombia and Sri Lanka, experienced "circuit breakers" due to the sharp falls (Xinhuanet, 2020).
Besides stock market, the prices of other commodities also experience a lot of fluctuation such as gold, oil, Bitcoin etc.

The Impact on Macro Economy
In China, the secondary industry and tertiary industry accounting for the majority part of the domestic economy, the impact would be shown respectively. Compared with the other two industries, the primary industry only accounting for 7.1% of the GPD in 2019, suffers small impact from the COVID-19. In recent years, the primary industry keeps slow but stable increasing, and is not an absolute factor in GDP growth (Eastmoney, 2020).
National Bureau of Statistics (2020) announces that the secondary industry is obviously affected, which means industrial production declines but the prices increases. To be specific, the added value of state-owned enterprises decreases by 7.9%. Joint-stock enterprises decline by 14.2%, and foreign-funded enterprises and Hong Kong, Macao Taiwan enterprises decrease by 21.4%. Private businesses fall 20.2 %. The added value of the mining sector the manufacturing sector and the electricity, heat, gas and water production and supply sectors falls by 6.5%, 15.7%, 7.1% respectively.

Z. C. Jiang et al. Journal of Service Science and Management
However, some production of important materials and supplies still keep growing. The output of medical protection and living necessities increases rapidly, masks and alcohol increasing by 127.5% and 15.6% respectively, and the output of frozen meat and instant noodles climbing by 13.5% and 11.4% respectively. The growth of high-tech products also keeps raising. The output of smart watches, smart bracelets, semiconductor discrete devices and integrated circuits increased by 119.7%, 45.1%, 31.4% and 8.5%, respectively. In addition, the production of basic raw materials is stable, and the output of pig iron, crude steel, plate glass and ten non-ferrous metals increases by 3.1%, 3.1%, 2.3% and 2.2%, respectively. Until February 25 th , 85.6% of large and medium-sized manufacturing enterprises has returned to work, and production and business activities are resuming in an orderly manner, according to the PMI (National Bureau of Statistics, 2020).
National Bureau of Statistics (2020)

The Impact on China's Exports
Although China utlizes effective policies to control the COVID-19, the negative impact of the global situation cannot be avoided, because of the global value chain. As the Coronavirus spreading around the world, global financial markets slump, and the global GDP growth is much more possible to slow down. Based on historical experience, the external demand will decline in the short term. As the world's largest exporter, the export contraction is negative to China.  (Xinhuanet, 2020). Therefore, the global evolution of the Coronavirus is bound to impact on China's export economy.
As the most powerful country in the world, the situation of U.S. has closed re- OCN (2019)  However, China's economy cannot be estimated so gloomy, because exporting is playing a weaker role in the share of GDP. It can be presented in Figure 1 that the exporting share of GDP becomes weaker, decreasing from 32.6% to 19.51% between the year of 2008 to 2018 (Globaleconomy, 2020). In addition, the impact on the domestic investment of fixed assets is serious, National Bureau of Statistics (2020) shows that decreasing is 24.5%, just achieving In addition, China's tourism industry has been hit hardest by the outbreak, which plays an important role in the national economy. Not only because of the ongoing uncertainty over the outbreak, but also its potential and increasing contribution.

The Impact on Particular Industries
According to the National Bureau of Statistics, the comprehensive contribution of tourism to GDP from 2015 to 2018 is 10.2%, 11.0% and 11.04% respectively.
The overall contribution of tourism to China's GDP in 2018 is 9.94 trillion yuan (Sina Finance, 2020 Therefore, it can be concluded that the impact on China is widespread, which is a huge risk.

Analysis-Where the Opportunity Is
Now, the whole world is facing a great chenllage, but we need to establish the willing to beat this no-fire war and realize the opportunity. Some positive signal cannot be ignored. In February, the index of business activity in the service sector is 30.1%, in the financial sector is 50.1%, remaining in the expansion range.
The index of business activity in the telecom and Internet software sectors is 43.3% and 41.4%, respectively, which is a positve signal (News Sina, 2020).
Therefore, it can be concluded that the outbreak may be positive for some of China's advantage industries. Industries such as communications, big data, cloud computing, the Internet and medicine have played an obvious role during the epidemic. The changes in user behavior are expected to continue after the outbreak ends, which may promote the further development of the relevant advantageous industries.
The positive role of the Internet industry has been fully reflected. For example, the online video industry has partly replaced the consumption of films in cinemas, while e-commerce has offset the shortage of offline consumption. Online education has replaced offline classes, and teleconferencing and telecommuting systems have helped companies get back to work.
In addition, right now, the domestic situation of the COVID-19 has been basically controlled, the resumption of work and production has been completed.

Conclusion and Suggestion
The impact of the outbreak of COVID-19 on China's economy is profound and complex. From the whole industrial chain is negatively affected. Affected by the strict policy, the whole social and economic activities were basically "frozen" and "shut down". So that, the real income level of the majority of residents decreases, and the prices of production and consumer goods rise up.
However, at the same time, the epidemic has also stimulated the creativity of The outbreak has also highlighted the significance of the human destiny community. It can be said that the global spread of this outbreak provides a rare showcase and opportunity for China to become a promoter of the next stage of globalization.