Zero-Covid, Big Money: China’s Spending Boosts Medicine, Technology and Construction

By Eduardo Baptista

Beijing – “Zero – China”Corona virus disease“Continuous monitoring, testing and isolation of its citizens to prevent the spread of the Corona virus, has affected a large part of the country’s economy, but it has created growth bubbles in the sectors of medicine, technology and construction.

The Chinese government is on track to spend more than $52 billion this year on testing, new medical facilities, monitoring equipment and other anti-virus measures. Corona virus diseasewhich will benefit about 3,000 companies, analysts say.

“In China, companies providing testing services and other related industries are making a lot of money as the government focuses on a containment-based approach to fighting the virus. Corona virus diseaseYanzhong Huang, a global health specialist at the Council on Foreign Relations, said:bad.), an American think tank.

China aspires to have testing facilities for Corona virus disease It is within a 15-minute walk of all of its citizens in large cities and continues to enforce mass testing at the slightest sign of an outbreak.

Hong Kong-based Pacific Securities believes this has created a market of more than $15 billion annually for test manufacturers and suppliers.

Most of the bill is borne by the government, either by purchasing test kits or paying companies to run the tests. Although test prices have fallen since the coronavirus outbreak in early 2020, continued demand has helped a number of companies.

First-quarter profit doubled for Hangzhou-based Dian Diagnostics Group Co Ltd, one of China’s largest medical test manufacturers. Its revenue grew over 60% to $690 million, less than half of which came from its testing services Corona virus diseaseAlmost entirely paid by the government.

Shanghai Runda Medical Technology Co., Ltd. said it is processing 400,000 tests Corona virus disease per day in April, during Shanghai’s nearly two-month shutdown, generating more than $30 million a month, according to an article in the state-run Securities Times.

China defends “zero-“Corona virus disease“It is critical to saving lives and preventing your healthcare system from being overwhelmed. There are no signs that it will turn back, even if the economic cost is increasing.

The latest indicators show that the country’s economy has been sharply weak since March as employment, consumer spending, exports and home sales have been hit by the lockdown measures.

Many private sector economists expect the economy to shrink in the April-June quarter from a year earlier, compared to 4.8% growth in the first quarter.

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Dozens of thermal imaging and surveillance camera makers, including Wuhan Guide Infrared Co Ltd and Hangzhou Hikvision Digital Technology Co Ltd, have benefited from the Chinese government’s request for devices to help monitor the health of its 1.4 billion citizens.

Wuhan Guide, one of the world’s leading manufacturers of thermal imaging equipment, doubled its revenue in 2020 by working overtime to supply fever screening cameras throughout China and abroad. Growth stabilized last year, but analysts expect it to rebound again in 2022 and 2023.

Disease was the mother of invention. Since March, Chinese companies and research institutes have filed at least 50 patents related to Corona virus diseaseAccording to a Reuters review of international and national databases.

The inventions are mostly related to adapting existing surveillance cameras and platforms to track close contacts and identify potential positive cases.

The urgent need for hundreds of new hospitals to alleviate the poor medical infrastructure in China has led some construction companies to thrive.

Beijing-based China Railway Group Ltd, a conglomerate that includes construction, manufacturing and real estate, has built temporary hospitals across China this year, and has been particularly active in areas hard hit by the virus. Corona virus diseaseLike Shanghai.

Its profits have grown steadily over the past two years, at least in part thanks to projects related to Corona virus diseaseAnalysts expect it to continue to do so for the foreseeable future.

One analyst estimated that about 300 temporary hospitals were built across China during the 35-day period between March and April, when infections soared, at a cost of more than $4 billion.

A third of it is built in and around Shanghai and there is no sign of government demand waning. A Reuters study of tenders for such projects indicates that the government will spend about $15 billion this year on new hospitals.

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