This document summarizes a webinar on designing a sustainable COVID-19 recovery in China. It outlines the economic challenges China faced in Q1 2020 due to containment measures, with GDP declining 6.8%. Since March, China's economy has restarted but global demand remains low. The webinar discusses China's short-term rescue measures totaling over $600 billion and its plans to stimulate domestic demand through new infrastructure, urbanization projects, and environmental protection. It proposes taking advantage of this opportunity to accelerate China's low-carbon transition through green stimulus investing, fostering green jobs, conducting environmental assessments, and reforming sectors.

1. CCXG Webinar
Designing a sustainable COVID-19 recovery:
Perspectives from China
4 June 2020
Yue Dong, Research Fellow, Energy Foundation China

2. E N E R G Y F O U N D A T I O NE N E R G Y F O U N D A T I O NENERGY FOUNDATION CHINA2 CCXG: Designing a sustainable Covid-19 recovery: China
COVID-19 and China’s Economy in Numbers in Q1 2020
Source: China national bureau of statistics
Chinese epidemic outbreak mostly in Jan-Feb
• Demand-side consumption and investments still low:
• Per capita disposable income reduced 11% yoy, per capita expenditure reduced 17% yoy
• Sales of basic goods stable, but sales of department stores and non-essential goods reduced 25%-
35%, hotels and catering services -35%, automotive sales -22%, construction -17.5%
• International trade: A 63 b$ missing trade surplus compared to Q1 2019
• PMI for new export orders down at 33% (from 29% in Feb and 46% in March)
• Chinese GDP: -6.8% in Q1
Since March, economy restarted, people back at work, but global demand still low
Containment of COVID-19 created
economic challenges in Q1
• Production tools impacted but
mainly back at work now:
• Manufacturing value added fell -
9.4% in Q1, still at -5% in April
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No GDP target for 2020
• priority on economic recovery: employment, poverty alleviation, consumption
Short-term rescue measures:
• Monetary measures; 280 b$ in bonds and earmarked budget to protect livelihood and stabilize employment; 350
b$ in tax cuts and extensions
Expand domestic demand and accelerate economic transformation:
• Investments objectives: consumption, structural adjustments and economic sustainability
• 530 b$ from bonds and 84 b$ from budget
• New infrastructures: information network and 5G, nEV charging stations,
• New urbanization: rural migration, renovations of 39 000 residential districts, modernization and improvement of
community services and urban amenities
• Large projects: transportation, water management, 14 b$ for railways
• Environmental protection: conventional pollution, waste management, nature conservation
• Energy security: “cleaner and more efficient coal”, RE, energy systems
Policy Update: Government Work Report at NPC
Source: Chinese government work report at NPC

4. E N E R G Y F O U N D A T I O NE N E R G Y F O U N D A T I O NENERGY FOUNDATION CHINA4 CCXG: Designing a sustainable Covid-19 recovery: China
Areas of work to take advantage of stimulus to accelerate the low-carbon transition
1. Future-oriented and green economic stimulus: invest in the future to helps accelerate
green structural transition of supply and demand
2. Foster green jobs and green skills: rescue people and support just transition
3. Economic and environmental impact assessment of stimulus measures and policies and
the 14FYP on economy, energy use, air quality and climate change
4. Environmental safeguards for investments
5. Reform sectors: take advantage of overcapacities and low energy demand
6. Establish ambitious targets for low-carbon transformation
Energy Foundation China sets up a Special Scheme to turn
this Crisis into Opportunity for the Green Transition

5. E N E R G Y F O U N D A T I O NE N E R G Y F O U N D A T I O NENERGY FOUNDATION CHINA5
Thank you