(Yicai Global) Feb. 3 — China has extended holidays and advised residents to reduce outdoor trips among other measures to control the spread of the 2019-nCoV (novel coronavirus) since its outbreak in December. Although the epidemic has a rather big impact on consumption, it is temporary, according to an official of the National Development and Reform Commission.

Lian Weiliang, deputy director of the NDRC, told a press conference in Beijing today that the outbreak has had a relatively large impact on the consumption of services such as transportation, cultural tourism, hotel catering and film and television entertainment. Movie box office, tourism revenue and catering income have also declined significantly year-on-year. However, new forms of digital economy, including online shopping, online food ordering and online entertainment, have been very active at the same time.

The impact of the epidemic on the economy is temporary, and will not affect the fundamentals of China's long-term economic improvement, he noted.

At present, China must promote the resumption of production by enterprises involved in epidemic prevention and control, energy supply, transportation and logistics, urban operations, medical supplies and daily necessities, and other sectors involved in the national economy and people's livelihood. For the more affected industries and companies, the government will unveil supportive measures, Lian revealed.

To date, the recovery rate for the production of major materials currently in short supply, including medical protective clothing, masks, and goggles, is between 60 to 70 percent, Tian Yulong, chief engineer of the Ministry of Industry and Information Technology, told the press conference. China has a daily production capacity of more than 20 million facial masks, which is the largest in the world, Tian added.

Editor: Peter Thomas