In early January, Insightview began showing links to a "mystery virus" in China in the daily Morning Briefing emails. Not surprisingly, the Chinese authorities immediately ruled out that this could be a new strain of the coronavirus, Sars. [Read the DW article, China rules out SARS as dozens struck by the pneumonia-like virus.] A few days later, the World Health Organisation linked the virus to the "Sars family". 

In this context, there is a significant risk that this could turn into a pandemic as hundred millions of Chinese are now travelling to their home-towns for Lunar New Year celebrations boosting the probability of spreading the virus. On the other hand, this does not have to be a repetition of the outbreak in 2002-2003 if Chinese policymakers do not try to play down the problem.
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At first glance, it seems that Beijing learned the lesson from 2003 when policymakers tried to hide information from the public. "Anyone who puts the face of politicians before the interests of the people will be the sinner of a millennium to the party and the people,” according to a comment from the official social media account of the Central Political and Legal Affairs Commission. [Read the SCMP article, China warns Communist Party officials: cover up spread of Wuhan virus and be ‘nailed on pillar of shame for eternity’.]
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It is hard to predict the outcome when such outbreaks unfold. That said, it is certainly not positive news, although several pharmaceutical companies will benefit. In addition, the virus emerges at an unfortunate time, as the global manufacturing sector shows only tentative signs of improvement. Indeed, at this time, Beijing does not need more headwind; the country needs more tailwind.
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‌20. January 2020 - 2020 Outlook roadshow: There will be no or only delayed updates on January 22
‌13. November 2019 - A short note on the swine fever in China: Why the outbreak worries Beijing as price pressure boost other food prices. Swine fever is spreading to other places around the world
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