Despite the escalating coronavirus situation worldwide, China's manufacturing industry signaled a strong rebound in March through the China Purchasing Managers' Index (PMI). Furthermore, with 90% of Chinese state-owned companies restarting operations, this could present an unusually optimistic front for an increasingly critical situation.
The worse is yet to come.
While confidence may increase with this rebound, the COVID-19 has been classified by the WHO as pandemic due to rising infection rates worldwide - in Europe, South Korea, and the US. Total cases outside China have reached 53,954 as of 12 March. Even if China manages to contain the outbreak, the pandemic will continue to damage the global economy ultimately affecting demand globally.