China reports fewer new COVID-19 cases, economy shows signs of recovery

Mainland China has reported a decrease in new coronavirus infections for the fourth consecutive day, with imported cases also declining, as the country implements stricter border controls and reduces international flights.

On Sunday, China recorded 31 new cases, a drop from 45 the previous day, with only one locally transmitted infection, and four new deaths, bringing the total to 3,304 fatalities and 81,470 infections.

To revitalize its economy, which has been severely impacted by containment measures, the Chinese central bank unexpectedly cut its key interest rate by 20 basis points, the largest reduction in nearly five years.

The government is actively encouraging businesses and factories to resume operations and is introducing fiscal and monetary stimulus to combat a potential economic contraction in the first quarter.

Despite efforts to reopen, officials express concern that exports and imports may suffer further as the pandemic spreads globally, impacting both domestic and international demand.

New policies are being considered to boost demand in key industries like automobiles, and significant loans have been extended to businesses to aid their resumption of work.

President Xi Jinping emphasized the importance of businesses resuming operations, even as the fight against the virus continues, and assured that support policies for small and medium-sized enterprises would be adjusted as needed.

Authorities are concerned about the possibility of a second wave of infections stemming from returning Chinese nationals, particularly students, and from asymptomatic carriers.

The central province of Hubei, the initial epicenter of the outbreak, reported no new cases for the sixth consecutive day, coinciding with the easing of some travel restrictions.

However, a new case was reported in Gansu province involving a traveler returning from Hubei who presented a virus-free health code.