The Coronavirus has continued to impact businesses, economies, livelihoods, sports, and every aspect of life across the world. People are terrified by the mention of the virus. At the epicenter of this pandemic, China, things are deteriorating month after month even after the government coming up with economic stimulus packages to reignite the economy.

The Far Eastern economic powerhouse has maintained mass quarantines in Wuhan, the origin of the outbreak, and a host of other cities with a significantly high number of infection rates. But even with such measures, there still are key risks of Coronavirus in China that the government, business leaders, citizens, and all stakeholders have to deal with. Here are 6 of those risks and how they can be mitigated:

1. Employment crisis

Nearly 30 million Chinese have already lost their jobs, and more could follow the same path if the virus isn’t stopped soon. Although there is an unemployment insurance scheme in the country that steps in to compensate people who get laid off, a huge chunk of Chinese workers haven’t subscribed to the scheme, so most of them will be forced to eat into their savings until the economy stabilizes. Others might sue their employers for wrongful termination. Simply put, China, like most countries hard hit by the virus, will be experiencing the worst employment crisis in history until the economy goes back to how it was before the coronavirus.


Employers will need to collaborate with professional employment organizations (PEOs) in managing risk and compliance issues that will arise from employees’ contract termination in China. If you are a multinational operating in China, you will need help from a global PEO to not only survive this crisis but to remain competitive on a global scale post-coronavirus.

2. Compliance risks

The Chinese government is starting to reopen its economy, which is a good thing for business. There are well-laid out safety and social distancing measures that businesses need to comply with before being allowed to open. But then, most companies have suffered more than enough during the nearly 6 months of lockdown. Everyone is in a rush to reopen as quickly as possible even if that means influencing government officials through corruption. That will precipitate compliance risks, which if unchecked might lead to a new wave of infections.


The government needs to train local compliance officers on compliance goals, and then seal all potential loopholes in the law that might give corrupt officials and unscrupulous businesspeople room to violate compliance laws.

3. Cybersecurity risks

The sudden increase in remote working and e-learning in China has precipitated over a 150% increase in cybersecurity risks in the country, especially in form of phishing scams and data leakages. Social distancing needs have also increased the need for online medical consultation, raising cybersecurity cases within the medical sector by 131% in the first quarter of 2020 compared to the last quarter of 2019, according to a report by the National Computer Network Emergency Response Technical Team and Coordination Center of China (CNCERT).


Service providers need to reimagine their digital transformation plans and invest more in cybersecurity. Remote workers also need to be retrained on how to stay safe online.

4. Misinformation and disinformation

Conspiracy theories about the coronavirus have continued to affect China both within and without its borders. People are sharing unverified data all the time on social media causing panic and unnecessary fear. Theories on how to protect against or treat infections have also sufficed and are spreading rather fast. Misinformation about the source and eventual spread of the virus has also caused undue discrimination against Chinese people and their businesses abroad.


The Chinese government must liaise with other countries if they are to win the battle against fake news, which is threatening to be a bigger problem than the virus itself.  Mainstream news outlets and news websites all over the world must be incorporated in this battle.

5. Racism challenges

Cases of African nationals being expelled from their homes in Guangdong, being racially abused in shopping malls, and some restaurants even banning black people has caused widespread outrage. Although Chinese embassies in African countries have denied the existence of anti-black racism in China, the videos and images doing rounds in social media will certainly taint China’s image in the eyes of the international community.


China has its job cut out in quelling diplomatic fires that are stemming from the racism claims. They must put the fires out before the matter gets out of hand.

6. Supply chain concerns

Supply chain disruptions in China are hurting not only the country’s economy but also the overseas economies that rely on China for raw materials. If the disruptions continue, China could lose its business partners to competitors, and that will hurt its economy even further.


China has to build transport flexibility to help exporters maintain open supply lines even during worldwide crises like the current one.


Given the rising risk to China’s economy, the government has to step in and assist employers, employees, and expatriates living in the countries to get their lives back to normalcy. Of course, mitigating the effects of coronavirus won’t be a small task for anyone, but then that is the only way the country will prevent its economy from sliding into a deeper crisis.

We are in this together!

I need to let you all know that we are in on this together.  If you need to vent, talk, cry, or just have some to talk with then I am here listening. Since I am working part-time at the local Kroger, I will to the best of my ability to work it out around my schedule.

But you can reach me here:


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We will get through this unprecedented event together! #hotelstrong #hospitalitystrong

For any specific information on COVID-19, I recommend go to CDCWHOAHLAAAHOA, and HSMAI. Also, follow information from your local authorities.


We are starting to reopen some hotels again (Yay!!!). Make sure you follow their guidelines and say THANK YOU to those that now show a unique spirit to serve, and helps us all get through this!! #hotelstrong #hospitalitystrong

About Are Morch

Hi, I am Are Morch. Your Digital Marketing Coach and Customer Experience Expert that specializes in creating effective digital customer experience offer for hotels while growing and scale customer acquisition and revenue.

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