Chinese President Xi Jinping has warned senior officials last week that the efforts to contain the deadly coronavirus had gone too far and is threatening the economy. Sources of an international media outlet had revealed the information a few days before China announced measures to contain the effects of the nationwide outbreak.
As the mainland is suffering from the slowest growth in nearly three decades, the Chinese leaders reportedly are eager to catch a balance between protecting an already stagnant economy and the coronavirus outbreak which has now killed more than 1,000 people with more than 40,000 confirmed cases.
According to international media reports, it was after the review of reports on the outbreak from the National Development and Reform Commission (NDRC) along with other economic departments, that the Chinese President told local officers last week that some actions to prevent coronavirus spread are damaging the economy. The two people who disclosed the information to Reuters also mentioned that Xi urged the officials to refrain from 'more restrictive measures'.
The local authorities outside the Chinese city of Wuhan which is the epicentre of the novel virus outbreak have closed schools and factories, along with sealing off roads and railways. Public gatherings and events have also been prohibited along with shutting down of local compounds. It is these measures which according to the Chinese President have been impractical and have engraved fear among already scared public of the SARS-like virus. Meanwhile, China's economic growth last year was the slowest in the last three decades with only 6.1 per cent.
While Xi reportedly voiced his concerns with the slowing economy, China's central bank had said last week that it will pump $173 billion into the economy to help fight the nationwide outbreak of the Coronavirus. The People's Bank of China released a statement which said that it would launch 1.2 trillion yuan reverse purchase operation to maintain 'reasonable abundant liquidity' in the banking system.
In order to further stabilise the currency market as the nation deals with the epidemic, the banking system would be 900 billion yuan more than it was in the same period last year. Furthermore, the PBOC also urged the financial institutions to provide 'sufficient credit resources' to hospitals along with other medical facilities. The latest development of injecting liquidity into the financial system came after the Coronavirus outbreak took a toll on an already slowing economy.