Beginning in January of this year, the coronavirus also had a major impact on the Chinese economy. China's Gross Domestic Product ( GDP) shrank by 6,8% during the first quarter.

For example, the industrial growth of Chinese State enterprises fell by 39.3% during the first quarter.

Following the rapid decrease of the rate of coronavirus infections during May, the Chinese economy started to re-bound.

As a result, investments in capital goods and enterprises jumped from -24.5% in January to -6.3& in May.

This rapid expansion following the pandemic made the Producer Price Index (PPI) jump between 4% and 5% in contrast to only 0.8% in the service industry.

All in all the Chinese GDP is expected to increase by 2% during the second quarter, (an increase of 8.8% from January) bringing the monetary value up to $14.3 trillion (U.S.) dollars — still 30% below the U.S. GDP.

That will bring the yearly Chinese GDP growth to only 2% to 3% for the total of 2020.

This is far behind the expected growth of 6%.

The Chinese Export decreased too, in part to the decrease in exports to the U.S., which dropped from a height of $53 billion per month during 2019 to a low of $20 billion during April 2020.

The Chinese government realizes that it can no longer rely on export growth to help the national economy.

Therefore it is placing more help and support to stimulate domestic consumption.

Dr. Hans Baumann, a former Corporate Vice President and founder of his company, is a well known inventor, economist, and author having published books on scientific, economic, and historical subjects. He is a member of the American Research Society and an Inductee of the Hall of Fame of Automatic Control, besides also being an honorary member of a number of technical societies. Read Dr. Hans Baumann's Reports — More Here.