Research on China's economic model changed since the COVID-19 epidemic

¹ School of Business, George Washington University, 20052, US
² Ranney School, New Jersey, 07724, US
³ Art and Science School, University of California, Los Angeles, 90095, US
⁴ Byron College, Athens, 15344, Greece

Abstract

The Covid-19 pandemic of 2019 was a global public health emergency, resulting in millions of deaths worldwide. The origin of pandemic was in China, where the disease was first reported in 2019 and in 2020, it became a global pandemic. Because of the economic and social effects caused by COVID-19, changes were made to China's economic model. The Chinese government wanted to protect their economy and people from the virus, so they invested a lot of money into combating the pandemic. Economic development is when a country's economy becomes more advanced than other countries. If it has good infrastructure and employment opportunities, it will become richer (McBryde et al., 2020). An economy can advance quickly through technological advancement, education, and increasing demand for goods and services. When China first experienced the pandemic, it had a rich economy and grew quickly. China was rapidly developing in terms of technology, education, and infrastructure. China's economic model took a turn for the worse when the COVID-19 pandemic hit it. The virus spread quickly, causing millions of deaths in China (Dhar, 2020). The Chinese government was forced to invest billions of RMB into research and to treat those affected by the virus. After COVID-19, China's economy fell into a slight recession. This could have been caused by a drop in exports, an increased mortality rate, and the government spending billions on stopping the pandemic. This paper will first give an overview of previous economic models that China used, then it will discuss how the COVID-19 pandemic changed China's economic model, and finally, this paper will look at the impact that COVID-19 had on China's economy.