Mohamed A. El-Erian , Columnist

China Virus Poses Longer-Term Economic Threat

The outbreak adds risks and complications to the country’s development process.

January 25, 2020 at 9:18 PM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

The economy is affected as well.
Photographer: Dale de la Rey/AFP/Getty Images

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

In assessing the complicated risks posed by the outbreak of the coronavirus to China and the global economy and markets, the main focus has rightly been on the effectiveness of containing its spread, treating those infected and preventing a recurrence. But a second longer-term dimension, which has attracted little attention so far, exposes risks to China’s historic and impressive economic development process.

Especially when compared with earlier similar outbreaks, including the SARS crisis 17 years ago, the Chinese government has moved quickly and forcefully to limit and counter the contagion. Vulnerable areas have been subject to lockdowns aimed at stopping the spread of the virus. A huge public information effort has been initiated. And there’s been larger-than-usual information-sharing with other countries, at least by China’s standards.