Kreab China Report on COVID-19 Report: Impacts, Challenges and Opportunities

Introduction for the Kreab China Report on COVID-19: Impact, Challenges and Opportunities

2020 began with a history-altering event – the outbreak of COVID-19. With all continents apart from Antarctica heavily impacted by the pandemic, the entirety of humanity is facing potentially millions of cases and an average death rate over 4%.

China was the first nation to experience a major outbreak of the novel coronavirus. Knowledge of the virus is still in its infancy, including its origins and causes. At this time, it is impossible to conclude that it originated in China simply because the first substantial number of cases were identified there. A further discussion of this will follow later in the report. Beginning in January 2020, many aspects of the country have seen substantial changes in the wake of the outbreak. Sharing and reflecting on China’s situation over the past two months is indispensable.

Kreab Beijing is keen to share our local insights, observations, and perceptions with a focus on the impacts, challenges, and opportunities that China faces currently and our communication recommendations for companies and organizations operating in China.

Our report examines the timeline of the outbreak in China and its impact on the economy, geopolitics, public opinion, business, and media. In addition, we suggest solutions for reputation management during the pandemic.

We hope this report will help corporations, NGOs, and government agencies outside of China to:

1) Understand the situation in China

• China’s outbreak situation. The number of COVID-19 cases in China stands at about 80,000 with almost no new local infections reported since March 18. China is now lending a helping hand to other hard-hit countries, offering its experience, medical aid teams, and equipment.
• Economic impact on China. China’s economy has been hit hard by the outbreak, but it is gradually gaining momentum with nationwide resumption of production and work.
• Escalating geopolitical risks. The chain reaction resulting from the outbreak escalated China’s geopolitical risks both in the Asia Pacific region and at the global level.
• Public opinion. Public opinion in China rode a roller-coaster during the worst of the outbreak and has been largely politicized both inside and outside of China. In parallel, the outbreak is also reshaping the Chinese media landscape and pushing the boundary for a free press.
• Corporate responses. Both domestic and international companies are promptly and proactively responding to the outbreak by making donations and maintaining normal operation amid the crisis.

2) Learn about the potential and ongoing shift in communication strategy in China

• No “BAU”; it is “BCP” now. Companies must replace “business as usual (BAU)” with the “business continuity planning (BCP)” approach to respond to the pandemic’s inevitable damage to business operations.
• Be honest and hopeful. Companies with regular, timely, and seamless communications mechanisms with a transparent and upbeat attitude will gain a firm footing to respond to this crisis and will be well positioned for post-crisis recovery and growth.
• Be consistent and aligned. Multinational corporations need to ensure their messages are consistent. They must also consider their positioning on an issue through a geopolitical and intercultural lens to avoid any unexpected collateral damage from unforeseen stakeholders outside of an intended market.
• Social purpose is higher on the communications agenda. The pandemic has pushed social citizenship higher on companies’ communications agendas and will continue to challenge business leaders’ understanding of their social missions in the post-pandemic era.
• Economy and life coming online boosts digital communications. Social distancing and remote working are a catalyst for the widespread transition to digital communications via social media platforms.

3) Plan ahead to prepare for the long-term impact and embrace new opportunities

• Government relief and sectors to benefit. The outbreak has expedited business’ online transformation and digitalization, and the economic relief policies launched by the Chinese government will greatly benefit several industries.
• Policy watch and follow-up will create first-mover advantage. The outbreak is a window of opportunity for multinational corporations to consolidate their government and public affairs efforts in China.

Points covered in this introduction are further elaborated in the Kreab China Report on COVID-19: Impact, Challenges and Opportunities presented by Kreab Beijing.

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